Research from Knight Frank indicates a significant increase in the uptake of large industrial spaces in Wales in the second quarter of 2024. This article delves into the factors contributing to this surge.
In the second quarter of 2024, the acquisition of large industrial spaces in Wales experienced a notable surge, as reported by property advisory firm Knight Frank. Transactions for properties over 50,000 sq ft doubled, reaching 680,000 sq ft compared to 340,000 sq ft in the year’s first quarter. This increase raised the total uptake for the first half of the year to just over one million sq ft, a significant boost of 400,000 sq ft from the same period in the previous year.
Neil Francis, head of the logistics and industrial division at Knight Frank, mentioned that the second quarter differed significantly from previous years. The exclusion of the Ford site from industrial figures underlines this shift in market dynamics.
Overall availability across Wales now stands at 5.2 million sq ft, with 16 per cent tied up in the Wilko portfolio at Magor, indicating a healthy yet competitive market environment.
Meanwhile, construction of new units at regions like Ebbw Vale and Cardiff continues, with Rhyd y Blew’s 52,582 sq ft RYB 1 unit under offer to a local occupier. The demand for smaller units also remains strong, demonstrating the diverse needs of businesses across different scales.
The preference for high-quality stock highlights a ‘flight to quality’ trend among occupiers, which is shaping the future landscape of industrial property markets in Wales. This trend is expected to persist as businesses increasingly prioritise quality over quantity.
The increased demand and limited supply of premium-grade industrial properties suggest a promising future for developers willing to cater to high-quality demands. The ongoing developments and anticipated completions provide a comprehensive overview of the sector’s immediate future.
While the industrial property market in Wales shows signs of growth, potential challenges, particularly in terms of maintaining the quality of facilities, remain. Developers and investors must remain cognisant of these issues to ensure sustainable growth.
The growth in the industrial property sector in Wales underscores a robust market, yet highlights challenges such as the need for quality facilities. The future remains promising yet demands strategic planning.
