Supply

The supply of units over 100,000 sq ft in the region currently stands at 4.62m sq ft across 24 separate units. Imperial Park in Newport is the largest unit at 800,000 sq ft, skewing the current availability.

The quality balance is heavily skewed towards lower-quality units, with just 16% of available space classed as Grade A, down from 36% at the start of last year. This is hindering take-up as occupiers are looking at neighbouring regions to satisfy their requirements for good quality units. Additionally, by unit count, the supply continues to be dominated by smaller units, with 66% being within the 100,000–200,000 sq ft size band. There are three units available above 300,000 sq ft, all of which are of second-hand quality.

Savills is aware that 21% of the current vacant stock is under offer and due to exchange in Q3 2021. This is set to bring the vacancy rate to 9.39%.

Take-up

Take-up in the South West and Wales market totalled 1.1m sq ft across seven separate transactions, 30% above H1 2020. Adhering to regional trends, deal volumes have centred around the smaller size bands, with 72% of deals being within the 100,000–200,000 sq ft size band, 14% in the 200,000–300,000 sq ft size band, and 14% the 300,000–400,000 sq ft size band.

H1 2021, has seen 62% of take-up being secondhand space, 29% built-to-suit space, and 9% speculatively developed space. The supply is hindering take-up as occupier requirements centre around new, modern units.

Development pipeline

There is currently 825,210 sq ft under construction in the region across five units. Four of these units are under construction in the South West and one in Wales. Of the five, two are under construction in the 100,000–200,000 sq ft size band, and a single unit in both the 200,000–300,000 sq ft band and the 300,000–400,000 sq ft band.

_{Read the articles within Big Shed Briefing below.}