A record number of industrial property was taken up in Wales in 2021 according to research conducted by Knight Frank.
The independent global property consultancy reported that 1.84 million sq ft of industrial units of 50,000 sq ft and over were transacted in Wales in Q4 of 2021.
A strong final quarter of the year saw a take up of industrial property over 50,000 sq ft reach 3.49m sq ft in Wales – up from 2.74m sq ft in 2020 and 2.5 times the amount transacted in 2019.
Neil Francis, head of logistics and industrial at Knight Frank in Cardiff, said: “The figures were boosted by the sale of 1 million sq ft at QRL (the former Quinn Radiators site), Imperial Park, Newport and overall there were equal numbers of sales and lettings, with a mix of warehousing, distribution and manufacturing.”
He added: “The strong finish to the year has helped to boost the five-year average take up to 2.37 million sq ft.”
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In addition to the sale of QRL, the headline leasing transaction was the letting of the new build 102,000 sq ft unit at St Modwen Park, Newport, where Genpower has agreed a 10-year lease at a rent of £6.25 per sq ft. After fitting out, the unit will form the heart of the company’s distribution network.
“In addition, unit 2, measuring 31,000 sq ft, has been let on a new 10-year lease,” said Mr Francis. “This has provided St Modwen with the confidence to progress with the next phase of development whilst also continuing dialogue with a number of occupiers seeking 100,000 sq ft plus build to suit options.”
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“It is also pleasing to see sales of 130,000 sq ft in Bridgend Industrial Estate and 114,000 sq ft in Aberdare to owner occupiers looking to expand their presence within the area,” he added.
The new report from Knight Frank showed that availability of units over 50,000 sq ft now stands at circa 4 million sq ft in the quarter.
“With Ford at Bridgend (former engine plant) accounting for 1.6 million sq ft of this space, it is clear that stock levels of larger buildings is now the lowest it has been for many years,” said Francis.
“This has been a fantastic year for the industrial market in Wales. There remains a great level and demand, although sadly the lack of good quality stock may result in less take up next year.” he added.
“However, on the positive side Ford will be formally marketed early in 2022 and this will be well received by occupiers and investors.”