May 27, 2024

Strong industrial property take up in Wales in third quarter of 2022: Knight Frank

Take up of industrial property for units over 50,000 sq ft in Wales soared to over 1.3 million sq ft in Quarter 3 of 2022 according to research from global property consultancy Knight Frank.

This very strong quarter’s take up figures were around 900,000 sq ft more than recorded for the first six months of the year and over three times the amount transacted in the same period last year.

Neil Francis, head of Logistics & 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.”

According to the new Knight Frank report the volume of new-build projects under way in both South and North Wales continued to be a positive feature.

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 3 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 this 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.

In the North, at Deeside Industrial Estate a 63,000 sq ft unit is under construction and is set to be available in Q4 this year, and at Hawarden, Redsun Projects is constructing a number of units, one which is 55,000 sq ft.

Neil Francis added: “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.”