Take up of large industrial space in Wales has soared, according to new research from Knight Frank.
Based on units of more 50,000 sq ft there were 1.3 million sq ft of space take-up across Wales in the third quarter of this year, according to the global property consultancy.
The 900,000 sq ft of take up from July to August, was more than recorded for the first six months of the year and over three times the amount transacted in the same period in 2021.
Neil Francis, head of logistics and industrial at Knight Frank in Cardiff, said: “The figures were boosted massively by the 411,000 sq ft New Sports warehouse development that has been completed in Wrexham and which is one of the largest ‘build-to-suit properties constructed in Wales over the past decade.
“But even without this, there was a tremendous 900,000 sq ft take up over seven other transactions, consisting of two sales and five lettings.
“The continued demand for good quality stock is evident in two of these lettings. Nisbets have taken a new lease at a 290,0000 sq ft unit at Newhouse Farm, Chepstow, which has been fully refurbished by the landlord. In addition, a 96,000 sq ft warehouse at Cardiff Docks, constructed around eight years ago, has been let to Owen Road Services at a new headline rent for a second hand unit of this size in the region.”
Knight Frank said levels of new build industrial stock across Wales is encouraging.
In South Wales these include a 50,000 sq ft unit by Trebor in Pencoed which is progressing well and is now under offer. Phase three of St Modwen Park in Newport, comprising units from 17,000 to 43,000 sq ft, is due to complete in November and plans are progressing to continue the speculative development with three further units of 52,000 to 117,000 sq ft. In Ebbw Vale, much needed new space close to the Heads of the Valleys Road is under construction with the Welsh Government on site for its 50,000 sq ft unit which is due to complete late in 2023.
At Deeside Industrial Estate in North Wales a 63,000 sq ft unit is under construction and is set to be available by year end, while also in Flintshire at Hawarden, Redsun Projects is constructing a number of units, one which is 55,000 sq ft.
Mr Francis said: “Availability currently stands at circa 4.4 million sq ft, which includes the 1.6 million sq ft at Ford, but with a number of larger properties under offer we expect similar good levels of take up for Q4 2022 and to end the year on a high.”
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