The industrial property sector has been largely unaffected by the Brexit vote according to a large property consultants.
The firm says that it has seen 7 million sq ft of logistics space being taken up in the third quarter – in line with the five-year average – and robust occupier and investor demand across most regions.
In the South West, Q3 take-up volumes were boosted by retailer, The Range’s purchase of 55 acre site at Delta Properties’ logistics development at Central Park, Bristol.
Construction has now commenced on one of the largest distribution centres ever seen in the South West, and one of the largest in the UK.
As a result, take-up volumes in the region have jumped to 2.3 million sq ft in Q3, and following a strong H1, could lead to a record year.
Due to this there has been an 18% fall in availability across the South West this year, however, the region has one of the strongest development pipelines in the UK with close to 3.4 million sq ft across five schemes, proposed to complete over the next three years.
Philip Cranstone, Associate in the Industrial & Logistics at Cushman & Wakefield in Bristol, comments: “2016 has been a bumper year for the South West, with big box logistics operators and discount retailers finally turning their attentions to the region.
“The Range deal has clearly had a huge impact, but it was not the sole contributor with several deals in Bristol, Gloucester, Ross-on-Wye, and more recently Swindon where four large transactions concluded over the summer, shrinking existing building supply in the town considerably.”