South West

19 July 2017, by Rob Cleeves

The South West remains a popular destination for occupiers, particularly those seeking land for large scale build to suit units

 

 

 
Central Park

▲ Central Park Bristol

Supply

■ At the end of 2016 available supply in the South West was at chronic low levels and whilst this has been slightly alleviated by two units being added to the market this year, available supply is still heavily constrained.

■ There is currently 833,624 sq ft available across three existing units, the space available in the South West has increased by 122% since the end of 2016 after available supply was at a chronic low of 374,904 sq ft. The largest unit on the market is 200 Western Approach in Avonmouth where 315,747 sq ft is available.

FIGURE 18

Supply by grade

 
Figure 18

Source: Savills Research

Take-up

■ After a record year for take-up in 2016 in the South West, there has been a decrease in take-up in H1 2017 as take-up was 29% below the same stage in H1 2016. Although this was to be expected due to the supply constraints present in the region. H1 2017 take-up reached 2.5m sq ft, this was aided by Amazon purchasing 33.5 acres of land at Central Park, Bristol where they plan to develop their own 2.2m sq ft unit, however if you exclude this deal only 261,880 sq ft was transacted in H1 2017.

■ There have been no deals for existing units in the South West in H1 2017. This has been primarily caused by the lack of units available in the 100,000-200,000 sq ft size band which is the most active size band for which occupiers operate within.

■ The largest deal in the region this year, aside from the Amazon deal, was DHL acquiring 160,000 sq ft at Central Park in Bristol. This continues the high levels of activity at the scheme as 1.9m sq ft was either let or sold there in 2016. The only other deal to take place was TB Engineering acquiring 101,880 sq ft at Goodman’s Gloucester Business Park.

FIGURE 19

Take-up

 
Figure 19

Source: Savills Research

Development Pipeline

■ There are four units in the development pipeline totalling 658,600 sq ft which will slightly alleviate the supply constraints present in the market. The largest unit under construction is Unit 1 Symmetry Park, Swindon where DB Symmetry is speculatively developing 217,000 sq ft.

FIGURE 20

Development pipeline by size

 
Figure 20

Source: Savills Research

TABLE 6

Key stats

 
Table 6

 

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Key Contacts

Robert Cleeves

Robert Cleeves

Director
Industrial & Logistics

Savills Bristol

+44 (0) 1179 102 227

 

Kevin Mofid

Kevin Mofid

Director
Commercial Research

Savills Margaret Street

 

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