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South West leads industrial property boom
The South West is about to be hit by another big property shortage, but this time it is not housing or offices that are in short supply.
A new report by The Royal Institution of Chartered Surveyors reveals that demand for industrial property in the UK has risen at the fastest pace in the past five years, with the South West leading the way as the top area for growth.
According to the survey, 35 per cent more chartered surveyors reported an increase in the numbers of sales and lettings in the second quarter of 2006, which is more than double the percentage increase shown in the first quarter of the year.
The report also reveals that confidence in the market is at its highest level for six years, with the most positive outlook coming from surveyors in the South West and the South East.
Malcolm Gunter, industrial property specialist and director at Bristol surveyors Williams Gunter Hardwick, explains: “The RICS report is particularly good news for the region’s speculative developers and land owners, who could see a big return on their investments over the next few months.
“The findings are no surprise to the agency market, however, the big issue, as always, will be the provision of sites to keep up with demand,” adds Malcolm. “This problem is particularly acute in Bristol, where there is a shortage of land around key industrial sites.”
According to Malcolm, the development of Greenfield land in areas such as Severnside and North Somerset, will prove instrumental to the region’s industrial growth.
Bristol property developer Terramond, which is behind some of the region’s largest industrial schemes, has just started work on a six-acre Greenfield site at Cabot Park in Severnside to build four warehouses totaling 122,000 sq ft. The scheme is to be known as Poplar Park.
Terramond Property Director Huw Thomas, said: “We have brought forward 45 acres of industrial land around Bristol in the last two years. This has all been serviced and developed and either let or sold to a mixture of national and local occupiers. There remains strong demand for both serviced industrial land and buildings within the Bristol area”.
“Although the situation is improving, there has been such a shortfall of large-scale industrial developments in recent years, that it will be some time before the balance between supply and demand is readdressed,” adds Malcolm.
“Developers will no doubt be encouraged by current market conditions and I am confident that there will be a significant increase in the number of speculative schemes similar to Poplar Park, in the future,” said Malcolm.
Units at Terramond’s Poplar Park development will range from 14,000 sq ft to 44,000 sq ft. The first warehouses are due for completion in spring 2007, and are available to let or purchase freehold. Terramond has also acquired a separate one-acre plot at Cabot Park to build a 16,000 sq ft warehouse unit.
Williams Gunter Hardwick are lettings and sales agents for both schemes, alongside GVA Grimley.
For further information on Poplar Park, or other industrial developments in the region, contact Malcolm Gunter on: 01179 221222.
Ends: November 1, 2006
Issued on behalf of Williams Gunter Hardwick by Venture Public Relations. For media enquiries contact Corrina Cockayne on 01179 596411.
Editor’s notes
RICS (Royal Institution of Chartered Surveyors) represents, regulates and promotes the work of property professionals throughout 120 countries. For further information, contact: 020 7222 7000, or visit the website at: www.rics.org.
Caption for photograph:
Poplar aerial PARK.jpg: An aerial photograph of Cabot Park, Severnside, where Poplar Park is being developed.
Poplar park outline.jpg: An aerial photograph showing the six-acre Greenfield site where Poplar Park is being developed.
