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The general sentiment, certainly in this region, is that Brexit will take time to resolve so since the vote it has been business as usual, with the majority of companies continuing with agreed strategies and plans.
New stock is coming to market in the area; ground works equating to £ 2 million for the New Hawke Ridge Business Park, Westbury, have been completed and following local demand, a second detailed Planning Application has been submitted for a roadside scheme to include a drive through. Work is also well underway to develop a small unit scheme ranging from 1,000 – 5,500 sq ft. Furthermore, the relocation of Herman Miller to a site adjacent to the A350 at Melksham has released its former building in Chippenham, extending to 75,000 sq ft, which has been refurbished this year and is now being offered at £ 6.25 per sq ft. Following four big shed deals in
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Swindon and a lack of replacement stock, industrial stock levels are at an all-time low of less than one million sq ft in Swindon, with no units currently available above 100,000 sq ft. Significant deals in the county include the relocation of Cooper Tires from its 14-acre site on the Bower Hill
“ The widespread lack of stock has seen a rise in rents and capital values with increases of up to 30 %”
Industrial Estate in Melksham to a 200,000 sq ft building in Swindon.
To the west, Bath based bathroom supplier Roper Rhodes has purchased a 195,000 sq ft warehouse in Portbury near Bristol, leaving two 7,000 sq ft trade
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counter units in Bath which were swiftly snapped up and are now both firmly under offer. Further south, military activity in the Amesbury / Bulford area, in the form of new housing and the expansion of the Army Garrisons, has attracted Travis Perkins to Solstice Park, who will be developing a 10,000 sq ft facility on a 1.75-acre site.
There is strong demand for freehold industrial units, particularly in the smaller size ranges, which is evidenced by the level of enquiries received at Hawke Ridge Business Park, and the popularity of the Glenmore and Rockhaven small unit schemes recently developed in Swindon.
The widespread lack of stock has seen a rise in rents and capital values with increases of up to 30 % over the past 18 months in some parts of the county. This context of limited stock has benefitted landlords, who are experiencing good occupancy rates on their portfolios with reduced rent-free periods on new leases.
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Despite the uncertainty of the Brexit negotiations, the year ahead is likely to be as exciting as the last, with growth in both rent and capital values for existing stock and strong investor demand. With a depletion in stock levels, occupiers will look to pre-lets and pre – sales at new build developments, such as Hawke Ridge Business Park, to resolve their storage requirements. This activity will stimulate and encourage existing and future business growth in Wiltshire. |
THE BUSINESS EXCHANGE 2017 29 |