Wales industrial property take up mood ‘positive’ with big deals set for second quarter of 2024

The industrial property market mood in Wales is positive with a number of large deals set for the second quarter of 2024, according to research from Knight Frank.

The global property consultancy reported that the take up of industrial property over 50,000 sq ft in Wales reached 340,000 sq ft over six deals in the first quarter of the year.

Neil Francis, head of Logistics & Industrial at Knight Frank in Cardiff, said: “Although this was down on the 412,500 sq ft from the same time last year we saw plenty of activity during the quarter but transactions are taking longer to complete due to added due diligence by the companies involved.”

Most of the deals completed in Q1 were freehold sales with the largest being the sale of 84,000 sq ft in Treorchy to Adexa, which will be using the premises for storage. This was one of three properties previously occupied by UK Window Group and all three have now been sold.

Availability now stands at 7.2 million sq ft which is up from 6.5 million and triggered by a number of larger units becoming available in North Wales.

In South Wales the 850,000 sq ft Wilko site at Magor is available and already rumoured to be attracting strong interest. The 1.6 million sq ft Ford site at Bridgend is still under offer.

Neil Francis said: “At St Modwen Park in Newport the letting of the 116,000 sq ft Unit 8 will now fall into Q2 figures. Headline rents being achieved for St Modwen on this park are now exceeding £9 per sq ft.

“The new 52,582 sq ft RYB 1 unit at Rhyd y Blew in Ebbw Vale was completed in October and is currently under offer to a local occupier looking to expand.

“Plans by Cubex for a new 67,000 sq ft unit to be built in Wentloog, Cardiff are currently delayed and it is hoped a solution can be found to enable this much-needed new quality industrial scheme to go ahead.”

More positively at London Metric’s Coryton site  at Junction 32, Cardiff, pre–let terms have been agreed on the proposed 37,000 sq ft unit.

Neil France concluded: “The general sentiment is positive and we know there will be some large transactions in Q2 with a number of 100,000 sq ft deals under offer and due to complete.”