We'd love to talk to you, so if you would like some more information please contact us. We look forward to hearing from you.

info@sturgessvandamme.co.uk

Telephone: +044 01275 349 011

Fax: +044 01275 349 368

INDUSTRIAL AND DISTRIBUTION FLOORSPACE AVAILABILITY STILL ON THE RISE IN THE SOUTH WEST, SAYS KING STURGE

Region is outperforming the UK average, led by Avonmouth and Severnside

New Tesco scheme is equivalent to the size of 90 football pitches

The amount of industrial and distribution floorspace available in the South West is bucking the national trend by continuing to increase, according to new research from international property consultants King Sturge.

A year ago, the firm‘s nationwide industrial floorspace survey recorded a fall of 1.8 per cent in available space, but six months later, that figure had become a 2.4 per cent increase.

And the latest figures for the South West, from June to December 2007, show a continued increase, albeit smaller, of 1.4 per cent, with the amount of available flooorspace totalling 1.36 million sq m.  

There was also a marked increase in the figures for availability in large buildings of over 10,000 sq m. The previous survey showed a fall of 4.1 per cent, but the latest figures reveal an 11 per cent increase to 312,000 sq m – or 23 per cent of the total available stock.

Meanwhile the availability of new floorspace in the region also rose by 56 per cent to 95,000 sq m, following a fall of 35 per cent in the previous survey.

Rob Cleeves, partner in the industrial agency team at King Sturge in Bristol, said the figures showed the extent of the confidence in the region among developers.

The research also highlights that prime industrial rents across the South West have remained flat in the past six months, although Bristol has seen a significant increase, from £75.35 per sq m to £83.41 per sq m. The industrial rental figure for Exeter is £70 per sq m, with Plymouth at £59.20 per sq m and Swindon also recording a figure of £70.

Speculative development schemes currently being developed across the region include:

• the ProLogis scheme at Cabot Park near Bristol, comprising two large units of 51,095 sq m and 10,684 sq m
• Access 18 at Avonmouth, which can accommodate up to 46,450 sq m
• The Gazeley development of two speculative distribution units totalling 31,000 sq m
• six warehouse units being developed by St. Modwen at Quedgley West, Gloucester, the largest of which is over 3,000 sq m
• the Negatex development at Olympic Business Park in Newton Abbot
• the Devon Enterprise Facility in Plymouth
• the Prospect Land development at Commerce Park in Frome
• 12 units at the Doric Business Centre in Trowbridge

Rob Cleeves told the firm‘s annual media briefing that the buoyancy of the market was illustrated by the fact that Tesco is planning a new 100-acre distribution facility at Avonmouth - an area equivalent to 90 football pitches.

“Our latest figures illustrate the confidence of the developers in the South West as an industrial location, with the eight speculative developments listed in our report alone being worth over £200 million,” he said.

“The Tesco scheme, in addition to the 860,000 sq ft being developed by drinks retailer Constellation, is proof that the Avonmouth and Severnside area continue to be the region‘s prime industrial and distribution dynamo.

“And across the region as a whole, our latest research shows that the South West is performing well above the national average in all the key indicators in terms of available floorspace”. 

ENDS             10th April 2008

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Notes to editors

King Sturge is one of the largest international property consultancies in Europe (52 offices in 17 countries), with a comprehensive network of over 165 wholly owned and associated offices throughout the world.  Over 3,800 staff throughout these offices cover all property sectors and specialisms, including plant and machinery.  In Europe, King Sturge operates in principal mainland European cities.

In Asia Pacific, King Sturge has associations in Australia, Indonesia, Malaysia, New Zealand and Singapore.

In North America, King Sturge has business partners in the Americas and Canada through King Sturge CORFAC International.