The star sector in the south west is industrial where the region’s advantages of easy access to large areas of the UK have boosted the growth of logistics space, as witnessed by Cabot Park,
Avonmouth.
The port also plays a significant role in this growing market and has large scale expansion plans including two biomass generating plants. The problems for the region will come as the supply of prime industrial space dries up, which will happen unless there is a surge of new schemes.
Some of this demand is being driven by online retailing, which is growing fast in the UK and creating demand for new logistics space, some of which is of special design. This will continue to be a strong factor throughout the UK where speedy satisfaction of consumer purchases will set the pace. It is noticeable how well new developments can do, as witnessed by Westpark 26 in Wellington where 26 units have been sold and more are planned. That means the appetite among companies to own freeholds is undiminished and either they have the cash to buy, or can get money from the bank. Offices are a more complex picture with take up jogging along in 2012 at around the same amount as the previous year.
There has been something of a shift to cheaper, Grade B space, although some prime offices have let well. At the same time
Bristol and the region are experiencing a growth of conversion of offices to residential use, sometimes for student accommodation.