Take up of industrial property over 50,000 sq ft in Wales reached 1.87 million sq ft in 2023, shows new research from property consultancy firm Knight Frank.
The deal activity was slightly up on the 1.8 million sq ft in 2022, During the year five deals totalling 416,000 sq ft were transacted in the last quarter, compared with 103,000 sq ft in Q4 of the previous year.
Neil Francis, head of logistics and industrial at Knight Frank’s Cardiff office, said: “Of the five deals in the quarter, the 52,000 sq ft letting of unit 9, St Modwen Park, Newport to JLI Trading was a highlight in that it set a new headline rent of £8.75 per sq ft for mid-box units in Wales.
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“The largest transaction was the sale of 130,000 sq ft at Llandow Trading Estate to an owner occupier.”
The middle part of 2023 in the industrial sector was dominated by a number of business closures in South Wales, which released over one million sq ft of secondary located industrial stock into the market.
Mr Francis said: “Positively though following the sad demise of 海角视频 Window Group, Knight Frank has managed to secure offers on all three properties in Rhondda Cynon Taff, totalling circa 200,000 sq ft, with completions expected this month.
Availability stood at 6.6 million sq ft at the year. There is strong interest though in the former Ford engine plant site in Bridgend, with a deal expected in the first half of this year.
The 850,000 sq ft Wilko site at Magor will be formally launched to market next month and is already attracting both occupier and investor interest.
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New developments include the Welsh Government’s 52,582 sq ft RYB 1 building at Rhyd y Blew in Blaenau Gwent which completed in October. A letting deal is expected to be concluded this quarter.
On the Bridgend Industrial Estate Robert Hitchins has been proactive with its remaining two sites at Central Park. Mr Francis said: " With a builders merchant signed up for a 20,000 sq ft unit and construction under way on a pre-let purpose-built 80,000 sq ft distribution centre, the estate will be fully developed and let by the end of this year."
On the outlook he added: "2024 is set to continue where 2023 left off, with good levels of interest mixed with a fair degree of caution. There will continue to be a focus on a flight to quality, meaning properties with strong ESG (environmental, social and governance) credentials and good M4 connectivity will become increasingly attractive.
“It will be interesting to see progression of the Cubex 67,000 sq ft unit in Wentloog in Cardiff, London Metric’s 37,000 sq ft at Junction 32 off the M4 in capital and Curtis Hall at Pentwyn. In addition, Studwelders has planning approval for a 200,000 sq ft unit in Magor and St Modwen is pushing ahead with phase five at St Modwen Park in Newport, which will include two large-box units of 120,000 sq ft and 160,000 sq ft.”