New research from JLL into Wales’s mid box and multi-let industrial market – units of between 5,000 and 100,000 sq ft – has revealed that prime headline rents leapt by 23% in the 12 months to March 2022.
The report, The multi-let and mid box industrial market Spring 2022, found that take-up levels in 2021 were more than treble the five year average, with limited supply of new space driving up average rents.
Despite this, JLL’s experts in Cardiff say that Wales’s market remains relatively competitive with other UK regions given rent rises across the country, helping attract new national occupiers.
Just 62,305 sq ft of space is currently available – one of the lowest availability rates in the UK. Under speculative development is a further 229,000 sq ft of space but all of it in the multi-let category.
New development under construction includes St Modwen Park, Newport and Robertstown Business Park.
In the year to March 2022, 129,000 sq ft of new space was let in Wales, all of it in the 4,999 – 49,999 sq ft bracket.
Heather Lawrence, director at JLL in Cardiff, commented:
The multi-let and mid box stock in South Wales primarily consists of older units, so any new schemes that are built are highly sought after.
Proactive landlords willing to spend on refurbishments that include upgrades to energy performance have often been rewarded with uplifts in rental values.
With rising rents across the UK, we are seeing more and more national occupiers looking for space in Wales to take advantage of cheaper rents. In addition, interest in locations further afield from the traditional prime markets such as Aberystwyth, Methyr and Abergvaenny is starting to encourage some new industrial development.