The buoyancy of the Welsh industrial property market has continued into 2021, according to research from global property advisory firm Knight Frank.
Transactions of industrial units larger than 50,000 sq ft reached 492,000 sq ft in the first quarter of this year, compared with 132,000 sq ft for the same period last year.
Knight Frank said the take up was from five deals, with one letting and four sales taking place. The largest deal of the quarter was the sale of the 172,000 sq ft former Tech Board facility in Rassau Industrial Estate, Ebbw Vale which will be the home to luxury car maker TVR.
The period also saw the disposal of 96,000 sq ft at Baglan Energy Park for £3.5m.
Neil Francis, head of Knight Frank’s logistics and industrial team in Cardiff, said:“Availability of large industrial units remains above six million sq ft, but Ford at Bridgend and Imperial Park at Newport account for 2.6 million sq ft of this space.
“At St Modwen Park, Newport the new build projects comprising 30,000 sq ft and 100,000 sq ft are nearing construction. With good levels of interest and terms being discussed it is quite possible that one or both could be let by the summer.”
In South Wales the Industrial Agents Society reports that take for Q1 reached 960,000 sq ft with more than 84 transactions. The majority (61) were under 10,000 sq ft, which is evidenced by the good levels of interest being received on smaller developments.
Tom Griffiths, surveyor with the Knight Frank Cardiff team, sa: “At Atlantic Business Park in Barry, for example, where 42 new units are being constructed there are now just eight units remaining, with capital values of over £100 per sq ft being achieved, which is setting a new level for the area.
“There is a similar experience at Vale Business Park in Llandow where our client’s eight-unit scheme has five units under offer ready to complete in May.”
Mr Francis added: “This level of demand has resulted in a busy first quarter of the year. We are proud to have been involved in 20 acquisition and disposal transactions during this time totalling 458,000 sq ft. With many of the units on our books currently under offer it is very pleasing to see that Q2 is shaping up to be as busy as the first quarter has been.”
