2020 Market Monitor South West of England and - Alder King
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Market Monitor South West of England and South Wales Property Review 2020 Property intelligence you can build on
Contents
3 Key Market Trends
5 Key Alder King Transactions
7 Bristol Office & Industrial & Logistics
9 Bristol Retail & Leisure and Investment
11 Cardiff Office & Industrial & Logistics
13 Cardiff Retail & Leisure and Investment
15 Exeter Office & Industrial & Logistics
17 Exeter Retail & Leisure and Investment
19 Gloucester Office & Industrial & Logistics
21 Gloucester Retail & Leisure and Investment
23 Bath
25 Bridgwater Foreword
27 Newport
Market Monitor examines
29 Plymouth
the occupational and
31 Swindon
investment markets in
33 Taunton
11 key centres in the
35 Truro South West of England
37 Residential Development Land and South Wales.
38 Planning
Simon Price
Senior Partner
Alder King
SUMMARY Key South West Centres
Office and Industrial Take-Up and Supply (000 sq ft)
Against a backdrop of uncertainty, the commercial property Further speculative development will commence this year but
market put in another strong performance in 2019. Occupier this takes time to deliver and in the short to medium term the Office Office Industrial Industrial
Year
Take-Up Supply Take-Up Supply
demand for business space and developer demand for land market remains constrained by a lack of supply, driving rental
2019 1,745 2,356 4,208 5,872
remained robust, with many businesses looking beyond growth and supporting values in the business space sectors.
2018 1,880 2,319 3,880 4,816
short term challenges and pressing ahead with their plans
Within our city centres, activity in the business space arena 2017 1,719 2,490 5,054 3,578
for growth.
will be competing against and complemented by strong
2016 2,023 2,724 8,427 3,694
Ongoing uncertainty and lack of opportunity dampened activity in education, hospitality and the private rental,
2015 1,909 3,235 5,852 4,320
activity levels in the investment market but there were a senior and student bed sectors.
number of notable transactions in the south west and it
With increased public awareness and new policy initiatives, Cardiff & Newport
continues to be a very attractive market in which, given the
Alder King Market Monitor 2020
Alder King Market Monitor 2020
some priorities are shifting. Responding to climate change Office and Industrial Take-Up and Supply (000 sq ft)
opportunity, investors will look to invest.
concerns, delivering sustainable environments will play an Office Office Industrial Industrial
Year
The imbalance between supply and demand has been a increasingly important role in the spaces people will wish to Take-Up Supply Take-Up Supply
recurring feature of the market in recent years and a further occupy and where investments will be made in years to come. 2019 398 1,012 1,184 1,378
constraint to take-up. Although stock levels were boosted last 2018 526 1,020 892 1,443
The decisive outcome of last year’s general election has given
year by the completion of a number of speculative office and
much-needed clarity and confidence to the market and as we 2017 768 1,073 1,111 957
industrial schemes, much of this development pipeline was
embark on a new decade, market sentiment is high and we 2016 762 1,183 725 1,340
swiftly taken up by ‘early raiders’ and ongoing uncertainty
are confident in the outlook for the next 12 months. 2015 748 1,209 1,008 1,459
delayed new commitments until late in the year.
2
Key Market
Trends
OFFICES SUMMARY INDUSTRIAL & LOGISTICS SUMMARY RETAIL & LEISURE SUMMARY INVESTMENT SUMMARY
Simon Price T 0117 317 1084 E sprice@alderking.com Andrew Ridler T 0117 317 1071 E aridler@alderking.com Rebecca Harries T 0117 317 1086 E rharries@alderking.com Oli Stretton T 0117 317 1121 E ostretton@alderking.com
2020 will see more speculative office development in key regional Total take-up in key South West centres increased in 2019 compared 2019 was another challenging year for retail across the UK, with The ongoing political uncertainty of 2019 dampened UK commercial
centres such as Bristol where up to three major new schemes could to 2018 but was held back due to the lack of good quality, immediately high street store closures and further CVA’s and administrations real estate transactional activity. Investment volumes slowed to
start this year. Bristol will also see work get underway on new build available supply and the continuing loss of consented sites to announced. Whilst this is set to continue into 2020, it is certainly circa £47bn, compared to circa £63bn in 2018.
speculative out of town development for the first time in seven alternative uses. lessening and we are seeing more positive progress and good news
years. stories across the sector. Boris Johnson’s commanding election victory should provide
The majority of centres are supporting speculative development with business and the property industry with a degree of much needed
We also expect to see more major occupiers undertaking portfolio St. Modwen, Chancerygate, Summerfield, Canmoor, KMW, Richardson A number of shopping centres and schemes are now reshaping and certainty and we anticipate seeing a bounce in activity as confidence
rationalisation along the lines of the recent HM Revenue & Customs Barbury, Barwood Capital and Trebor all active across the region. repurposing in order to utilise redundant retail space, offering a mix returns.
and BT restructuring which again would favour larger cities such as of residential, office and leisure uses. We are also seeing retailers
Bristol and Cardiff. A major constraint to activity has been the limited amount of good reinventing their store experiences to attract shoppers and adapt to Retail was the worst performing sector during 2019. Structural
quality second hand space coming to market. As a result some customer needs. changes in the sector and a difficult trading environment have taken
Increasing pressure to retain and recruit key talent is having a mid-range occupiers have only been able to secure space via design their toll as tenants continue to default or rationalise their estates.
major effect on the market with occupiers seeking greater flexibility and build with some remaining in their current space as relocation Landlords and investors are seeing opportunities to work with local The tough retail environment and the loss of multiple major retailers
in working patterns and increasing specification requirements to costs are prohibitive. communities and businesses to grow the offering in town and city has continued to push rents down. It is currently unclear where the
differentiate themselves from competitors. centres to draw consumers, increasing footfall and spending. bottom of the market is and further falls can be anticipated.
Where second hand space has become available, landlords have
Linked to this, wellness, sustainability and technology are proactively taken space back, and significantly moved rentals on. Retailers are increasingly focusing on the environmental impact of In contrast, the alternative sector has performed well and offers
increasingly important. More occupiers are seeking outdoor space, In Bristol particularly, the rental gap between new and good quality their online business as sustainability continues to drive consumer attractive growth potential. Macro trends in urban living, retirement
quality staff amenities, electric charging points, sustainable building second hand space has reduced significantly. purchase decisions. and hospitality are leading to investor interest in operational linked
features and smart building technology to drive greater control and investments, further strengthening this sector.
efficiency. There will be further upward pressure on rents, particularly for those Across our regions, rents have declined over the last 12 months and
Alder King Market Monitor 2020
Alder King Market Monitor 2020
facing their first rent reviews on space acquired in 2014/15. vacancy levels increased. However there remains a healthy demand Despite the uncertainties of the past year, market fundamentals
Headline rents across the region stayed level throughout 2019 with for well-located units. remain strong with an active occupational market, low vacancy
growth in Bristol, Plymouth and Taunton. Further city centre rental The key areas of growth continue to come from occupiers in the rates and rental growth offering encouragement to investors.
growth is expected in the key regional cities, together with an upturn logistics sector and particularly those involved with internet retail As we move into 2020 with more political certainty, we are hopeful The industrial and office sectors have remained resilient with
in out of town rents around north Bristol. fulfilment, with an increasing number of enquiries from engineering that the year will see less disruption and more positive change. further growth anticipated.
and added value engineering occupiers. Some of the most significant
The continued rise in activity within the co-working sector will also transactions of 2019 include Ocado’s RDC acquisition in Avonmouth The UK remains an attractive destination for investment and
increase pressure in some occupier sectors for shorter leases. in Bristol, DHL in Swindon, GE Aviation/G-TEKT in Gloucester and international investors are benefitting from attractive currency
Howard Tenens in Newport. conditions. With a shortage of stock and a strengthening occupier
market, we expect a renewed influx of capital as the situation
Business confidence in the sector is robust with a ‘keep calm and continues to stabilise.
carry on’ attitude which we believe will lead to continuing rental and
capital value growth and improved activity levels through 2020.
3 4
2
Key
Alder King
Transactions 1 1 2
ACQUISITIONS DISPOSALS
1. Newport Leisure Park, Newport, South 1. 4 Glass Wharf, Bristol for Salmon
Wales for Monmouthshire County Council. Harvester/NFUM.
Price £21 million, NIY 6.3% Size 210,000 sq ft on 1.3 acres
Size 141,000 sq ft on 11 acres
2. Nursteed Trading Estate, Devizes,
2. The Programme, Bristol for IWG (Spaces). Wiltshire for private investor.
Size 26,500 sq ft Price £3.46 million, NIY 6.45%
Size 41,685 sq ft on 3.86 acres
3. Crown Records Management Building,
Marsh Barton Trading Estate, Exeter 3. Westpark 26, Wellington, Somerset
for Torbay Council. 3 4 for Summerfield Developments. 3 4
Price £1.67 million, NIY 6.75% Size 24,588 sq ft on 1.4 acres
Size 24,955 sq ft
4. Unit 2 St. Modwen Park Gloucester,
4. Dunball Trading Estate, Bridgwater Gloucester for St. Modwen.
for South Somerset Council. Size 44,860 sq ft
Price £2.82 million, NIY 7.5%
Size 36,050 sq ft 5. Unit 15 St. Modwen Park Access 18,
Bristol for St. Modwen.
5. Costa Drive-Thru, Hardwick, Gloucester Size 151,000 sq ft
for Rowe Group.
Price £1.5 million, NIY 5.25% 6. The Chocolate Factory, Somerdale,
Size 1,800 sq ft 5 6 Keynsham for St Monica Trust. 5 6
Alder King Market Monitor 2020
Alder King Market Monitor 2020
Size 16,915 sq ft
6. 5 & 6 East Place, Harlow for Macfarlane
(UK) Ltd. 7. Building 2, Weston Gateway,
Size 15,500 sq ft Weston-super-Mare for LiveWest.
Size 18,500 sq ft
7. Harworth Solar Portfolio, Northern
England for Lightsource BP. 8. Former BCA site, Royal Portbury Docks,
Price £5 million, NIY 4.61% Bristol for M7 Real Estate.
Size 62,000 sq ft on 10.8 acres
8. Droitwich Central, Berry Hill Industrial
Estate, Droitwich for Arena Flowers.
7 8 7 8
Size 160,875 sq ft
5 6
113 acre Severnside Site, Avonmouth. Unit 4 Vertex Park, Emersons Green.
The Landing, Bristol. Courtesy of L&G.
Bristol
£37.50 psf
New city centre office headline rent Unit 15 St. Modwen Park Access 18, Bristol, let to Ocado. Courtesy of St. Modwen.
OFFICES Take-Up
INDUSTRIAL & LOGISTICS *Take-Up
Simon Price T 0117 317 1084 E sprice@alderking.com 000s sq ft Andrew Ridler T 0117 317 1071 E aridler@alderking.com 000s sq ft
1,250 5,000
2019 was another strong year for the Bristol Both the city centre and out of town markets Take-up in 2019 amounted to 1.474 million now 84% let and 64% of its 15 unit 121,000
4,500
1,000 4,000
1,091
1,039
office market, particularly in the city centre. are suffering from a restricted supply of sq ft*, a decrease of 8% on the 2018 figure of sq ft Warmley Business Park sold/let.
939
931
high quality space. The pre-let at Assembly 0.9% 750 783
1.6 million sq ft and 42% down on the 10 year 8% 3,000
2,950
2,902
New record headline rents were set in both left just 90,000 sq ft under construction by 500 average of 2.53 million sq ft. In Avonmouth, St. Modwen completed its 2,000
the city centre and out of town markets. RLAM at The Distillery, Glassfields which is 151,000 sq ft speculative RDC building
1,606
250 1,000
1,474
due to complete in Q2 2020. Several new Take-up for the first half of 2019 was together with a further 25,000 and 45,000
Take-up was subdued at the start of the year, schemes will start in 2020. 0 approximately 660,000 sq ft, with three sq ft. On Severnside, Richardson Barbury 0
caused partly by lack of supply and partly 15 16 17 18 19 deals accounting for 235,000 sq ft. Take-up completed the first phase of its More+ 15 16 17 18 19
by ongoing uncertainty surrounding Brexit High quality refurbishments are underway at in the second half of the year was higher at scheme where 13,762 sq ft was pre-let to
in some occupier sectors. However the year 10 Wapping Road by Bellborough and 37-39/41 Supply circa 813,339 sq ft with again three deals Pilkington Glass. Further new build space Supply
finished strongly with AXA’s pre-letting Corn Street by CSL. L&G’s refurbishment 000s sq ft accounting for 255,000 sq ft, including the is under construction including Barwood 000s sq ft
during the early stages of construction at The Landing on Redcliff Street let within 1,250 letting of 151,000 sq ft to Ocado at Access 18, Capital’s 149,000 sq ft Junction building 4,000
1,250
of circa 200,000 sq ft at Assembly to BT. weeks of practical completion in Q4. Avonmouth and the acquisition of 52,500 at Severnside and Trebor’s 150,000 sq ft
1,000
The volume of named active enquiries sq ft by The Delivery Group at Horizon 38 in Portside scheme at Kings Weston Lane. 3,000
3,000
undertaking viewings and negotiations during In north Bristol further refurbishments are Filton.
850
3.5% 750
9%
2,750
Q4, together with those seeking pre-lets, planned, in particular on Aztec West as a The most significant land sale of 2019 was 2,000
725
700
700
500
all point to a very encouraging underlying result of the park’s strong performance in The overall number of transactions fell from Walters Land Ltd’s acquisition of 113 acres on
1,500
strength in the market and we anticipate a 2019. Baylis is also progressing proposals 173 in 2018 to 154 in 2019 with approximately Severnside which it is proposing to service 1,000
1,250
1,250
250
very positive start to 2020. for a first speculative phase at Jupiter Park, 65% of disposals involving property below and split targeting low density occupation.
0 0
Cribbs Causeway. 15 16 17 18 19
10,000 sq ft. Take-up was again constrained 15 16 17 18 19
The key sectors driving take-up were led by due to limited immediately available space The continuing supply issue for Greater
Alder King Market Monitor 2020
Alder King Market Monitor 2020
the co-working/serviced office operators with City centre headline rents reached a new in the city’s core industrial and logistics Bristol is that the bulk of the available land
Spaces (IWG), Clockwise, Runway East and high of £37.50 psf at 22-24 Queen Square. Headline rent locations. is located on Severnside, Avonmouth with an Headline rent
Landmark all taking space during the year in In north Bristol Alder King negotiated a new £psf extremely limited supply in central Bristol, £psf
40 10
the city centre. Other active sectors included rental high of £23 psf at 600 Aztec West for In the same period the supply of industrial North and East Bristol, Yate and Thornbury
9.75
TMT, professional and financial services Columbia Threadneedle. space increased by 9% to approximately 3 where strong location-specific demand exists.
9.50
37.5
8.7% 8
8.75
34.5
8.5
30
together with the public sector. million sq ft, the highest level for five years.
32.5
8
28.5
28.5
As a result of ever-tightening supply, we For context, the city’s built industrial stock is Strong demand also continues from 6
city centre
20
2.6%
23
22.5
Significant out of town transactions included anticipate that 2020 will see more pre-let between approximately 65–70 million sq ft. companies wishing to purchase on a freehold
22
21.5
21.5
4
St James Place’s acquisition of 40,760 sq ft activity across the city. Occupiers will need basis with capital values for better quality,
10
at 2610 Aztec West and Mitie’s acquisition of to plan much further ahead to satisfy their 2.2% A number of new schemes reached practical well specified space still increasing. 2
16,915 sq ft at The Chocolate Factory. requirements when considering break 0
completion, with Chancerygate’s 107,000 0
options and lease ends. out of town
15 16 17 18 19 sq ft, 11 unit Vertex Park at Emersons Green *
SW IAS 2019 15 16 17 18 19
7 8
“4.02% NIY -
the lowest yield
for a sub 20 year
lease outside of
London in 2019.”
Temple Quay House, Bristol.
The Wave, Easter Compton. Courtesy of Global Shots.
Bristol Hartwell House, Bristol. Kings Orchard, Bristol.
RETAIL & LEISURE Zone A headline rent
INVESTMENT Value of investment transactions
Rebecca Harries T 0117 317 1086 E rharries@alderking.com 11.7% £psf John Benson T 0117 317 1100 E jbenson@alderking.com £ms
300 1,000
Oli Stretton T 0117 317 1121 E ostretton@alderking.com
300
300
300
300
Broadmead
250
Baylis Estates’ £40 million scheme for a Cabot Circus maintains its high occupancy 800
845.4
new leisure complex off Merlin Road at rates and demand for well-placed retail units 33%
200 Robust occupier market fundamentals and tight pricing in London have drawn investors to
657.9
200
56% 600
200
200
200
200
Cribbs Causeway is making good progress. remains strong. Samsung Experience has regional cities like Bristol over the past few years. Despite 2019 having a subdued start, 2019
180
150
170
170
170
170
595.6
The Costa Coffee drive-thru is now open taken two large combined units to create a
150
investment volumes reached circa £650 million. 400
475.3
The Mall
420
100
and trading, with the Jaguar Land Rover new flagship store, set to open in the spring.
200
showroom under construction and scheduled Work has also started on the new D&D 10%
50
Temple Quay House. Bristol’s largest is single let to Bevan Brittan LLP who have
to open in Spring 2020. The ice rink and iFly London luxury restaurant and bar which is 0 transaction of 2019 was reported to be the sub-let 46% to six tenants including Tribal 0
skydiving centre will follow in early 2021. due to open in early 2020. This addition will 15 16 17 18 19 15 16 17 18 19
Cabot Circus freehold sale of Temple Quay House by the Education, WSP Management Services
launch the reshaping of Quakers Friars, with Secretary of State for Housing, Communities and Close Asset Management Holdings.
Cribbs Causeway also welcomed a new works to the public realm planned. Out of town headline rent and Local Government to Alpha Real Capital. The passing rent is £1.9m with eight years Prime yields
Dunelm superstore which opened in the £psf The 154,191 sq ft property is let for 17.75 years. unexpired. %
former Toys R Us unit in December 2019. The Galleries Shopping Centre in Broadmead 40 This Grade A office headquarters building 8
has recently been sold and the new was sold for £73.35m, 4.02% NIY and a The Cobden Centre, Emersons Green.
Unique leisure attraction Upside Down owners are currently reviewing options for 30 capital value of £475 psf, well in excess of the Royal London Asset Management purchased 7
30
30
30
30
House UK is launching its fourth site in The redevelopment. £59.15m quoting price. The deal represents Units 1-4 from Aberdeen Standard for
16.6%
25
Mall at Cribbs Causeway, offering visitors 20 the lowest yield for a sub 20-year lease £8.715m, 4.99% NIY. The industrial property 6
an experimental experience and chance to The city’s food and beverage sector remains outside of London in 2019. totals 60,615 sq ft and is single let to industrial 4.75%
take zero-gravity illusion photos. Other new strong, with new arrivals from the Bristol & 10 5
Sainsbury’s Supermarkets with eight years office 4.75%
occupiers within The Mall include All Good Bath Rum Distillery, Backyard Chicken and Hartwell House. This 56,000 sq ft office unexpired. retail high street 5.5%
0 retail out of town 6.25% 4
Things and Space NK, adding to the mix of Black Rock. The Italian family behind the 15 16 17 18 19
building was sold to Aberdeen Standard 15 16 17 18 19
premium brands that have increased over successful Pasta Loco has opened three Investments for £28.15m, 5.19% NIY. The 410 & 420 Bristol Business Park. In the
Alder King Market Monitor 2020
Alder King Market Monitor 2020
recent years. new restaurants in the city. Wapping Wharf office is multi-let to occupiers including SN North Bristol out of town office sector, AFH
continues to thrive with Cargo and Cargo Leisure headline rent Investment by sector
Systems, RSM UK Management and EPIC Wealth Management acquired 410 & 420
0% £psf %
The Wave artificial surfing lake in North 2 offering a plethora of food, drink and Bristol providing a WAULT of 7.1 years to Bristol Business Park for £8m, 6.10% NIY.
50
Bristol saw its first surfers take to the water independent retailers. Japanese restaurant expiry and 5.7 years to breaks. The freehold offices provide high quality
cinema
in October 2019. The leisure attraction is the Seven Luck Gods is the newest addition from 40 space and are let on FRI leases to Motability
first full-size facility of its kind in Europe. the team behind Hyde & Co, Bambalan and Kings Orchard. CCLA purchased this Operations until September 2026.
25%
35
35
35
The Ox. 30
freehold waterfront Grade A office on behalf
32.5
32.5
health & fitness
20 of its Local Authorities Mutual Investment
Trust for £31.4m, 5.75% NIY. The property office 45%
15
15
15
15
15
15
10 industrial 32%
12
12
12
12
0% retail 10%
0 other 13%
15 16 17 18 19
A3/A4
9 10
“Stable occupier
demand and a lack
of development
land continues
to fuel industrial
rents and freehold
prices.”
3 Ipswich Road, Cardiff.
John Street, Cardiff.
Cardiff 28%
City centre office take-up Aldi Distribution Centre, Cardiff.
OFFICES Take-Up
INDUSTRIAL & LOGISTICS Take-Up
Owen Young T 029 2038 1996 E oyoung@alderking.com 000s sq ft Owen Young T 029 2038 1996 E oyoung@alderking.com 000s sq ft
800 1,000
Demand in 2019 was somewhat subdued There is an obvious shortage of quality Stable occupier demand and a lack of land Supply has increased, mainly as a result of 800
704
880
600
685.6
with a notable decrease in the number space, especially larger floor plates, and for new development continues to fuel rising the closure of Batleys at Fforest Farm and
617
of larger transactions. This resulted in a proposed new developments at Central 28% rents and freehold prices although these Brindley Road releasing two properties 7% 600
499
400
515
28% reduction in take-up compared to the Square (120,000 sq ft), Central Quay (Phase haven’t risen as much as expected. Garrison into the market totalling 199,074 sq ft and
499
400
477
357
402
previous year which is 30% lower than the 1 – 220,000 sq ft) and John Street (109,000 200 Barclay Estates have been quick to realise the accounting for close to 25% of the county’s
200
five year average. sq ft) are already subject to pre-let enquiries. trend with the speculative purchase of the availability.
Both John Street and The Interchange 0 former Batleys cash and carry unit at Fforest 0
The city centre still dominates activity, with at Central Square have commenced 15 16 17 18 19 Farm Industrial Estate (119,074 sq ft). Notable deals in 2019 included Atkins taking 15 16 17 18 19
occupiers favouring new developments construction, as has the refurbishment of 39,200 sq ft on Clipper Road in Cardiff Docks
with better transport access rather than Hodge House by Legal & General. Supply Cardiff is not generally regarded as a major and 3 Sixty taking 28,265 sq ft at Glynstell Supply
traditional business parks. For a number of 000s sq ft distribution location, with the majority Close in Leckwith. 000s sq ft
years, out of town development has been City centre supply has remained at the same 1,000 of warehouse occupiers operating local 1,000
extremely limited, resulting in lower quality level but we expect this to decrease quickly rather than national distribution functions. Take-up last year was disappointing and
909
900
800 800
845
839
stock available in these locations. once Hodge House and Fusion 1 are let, both Exceptions are the Royal Mail, Rhys Davies although the statistics look reasonable,
788
accounting for over 130,000 sq ft of available Distribution, DPD and Travis Perkins who the letting of 180,000 sq ft on a short term
721
710
707
Encouragingly, work is expected to start in space.
1.6% 600
operate a regional distribution centre at agreement to Bad Wolf at Pinewood Film
79% 600
515
400 400
2020 on Cardiff Parkway, a new business the Associated British Ports site on Cold Studios in Wentloog skews the figures.
472
district and train station at St Mellons in East Headline rents have not risen and are 200 Store Road. Retailers operating their own 200
Cardiff. The first phase of 300,000 sq ft of expected to remain constant for 2020. We distribution functions play an important role
0 0
900,000 sq ft is due to be completed in 2023. predict upward pressure due to lack of stock 15 16 17 18 19
in the city. The most recent example is Aldi in 15 16 17 18 19
The station would also utilise existing relief and expected new lettings on completed Wentloog as well as Boots and Peacocks.
Alder King Market Monitor 2020
Alder King Market Monitor 2020
lines and is aiming to secure 12 train services new developments, especially in 2021. Rents
an hour (24 in and out), including two to on secondary buildings are expected to rise Headline rent The removal of the Severn Bridge Toll in Headline rent
London and four to Bristol Temple Meads. encouraging refurbishment, recent examples £psf 2018 may potentially benefit Cardiff as a £psf
25 6
being Brunel House and Hodge House. distribution location but a lack of viable
25
25
25
25
5.80
5.80
Notable deals included Sky taking 39,714 sq ft development sites is holding back the market. 5
5.5
20
22
5.25
5
at 4 Capital Quarter, Optimum Credit taking Despite being the capital of Wales and being 4
18,915 sq ft in the same building and Starling 0% 15 situated alongside the M4, Cardiff’s location 0% 3
14.5
14.5
14.5
14
14
Bank taking 14,130 sq ft at Brunel House. 10
towards the western end of the UK’s major
transport axis means that it struggles to 2
5 compete against locations further to the east 1
0
such as Newport, Bristol and Chepstow for 0
15 16 17 18 19 major transport and distribution functions. 15 16 17 18 19
city centre out of town
11 12
The Hayes, Central Cardiff.
Cardiff 3 Capital Quarter.
RETAIL & LEISURE Zone A headline rent
INVESTMENT Value of investment transactions
Owen Young T 029 2038 1996 E oyoung@alderking.com £psf Oli Stretton T 0117 317 1121 E ostretton@alderking.com £ms
250 500
Owen Young T 029 2038 1996 E oyoung@alderking.com
474.5
The landscape remains uncertain particularly Newport Road has struggled over the last 200 400
225
225
225
225
220
407.2
for city centre department stores and decade but Metro Bank has secured a 5,000 Cardiff’s commercial investment volumes reached circa £400m in 2019.
although a number of vacant units exist in sq ft unit at the new Dragon Retail Park as 2% 150
145% 300
St David II Centre, new occupiers continue Wales’ first Drive-Thru Bank. It joins Wickes 100 6 Park Street. Adapt Properties acquired Excelsior Industrial Estate. CCLA 200
to emerge including a second Zara store, DIY who have committed to 25,000 sq ft. the long leasehold interest for £10m. The acquired the freehold interest of this single
188.2
169.1
166.7
50 100
Levi’s, Hotel Chocolat and The Ivy Restaurant, office extends to 52,570 sq ft of Grade A let industrial estate from OLIM Property
presenting 260 covers to replace Jamie Hotel demand has increased, spurred on 0 accommodation and is arranged over six for £8.54m, 7.10% NIY. The 106,273 sq ft 0
Oliver’s. by Cardiff’s large event offering and new 15 16 17 18 19 15 16 17 18 19
floors, fully let to Media Wales. This off- property is fully let to Booker Wholesale.
International Convention Centre. Mercure has market transaction reflected a NIY of 5.6%.
The leisure offering in the city centre is refurbished its Cardiff North Hotel and the Out of town headline rent Crickhowell House. This single let office Prime yields
still strong and has attracted several new easyHotel is under construction on Fitzalan £psf Gwaelod y Garth Industrial Estate. This building was purchased by Equitix in January %
bars and restaurants including 10 Mill Lane, Place. Furthermore, the old Post Office and 40 freehold industrial estate is fully let to six 2019 for £47 million. The property is let in its 8
40
40
40
40
Mowgli, 5-10 Church Street and WOW at 11 County Court on Westgate Street is set to occupiers with a WAULT of 6.9 years to expiry entirety to The National Assembly for Wales
Windsor Place. be transformed into a 4 star, 175-bed hotel 30 and 4.1 years to breaks. The units total circa Commission with an unexpired term of 13 7
30
operated by the Celtic Manor Resort. 50,000 sq ft and the estate covers an area of years.
Repurposing upper floor space on Queen
0% 20 2.79 acres with a low site coverage of 42%. 6
Street and St Mary Street will bring forward Developments to monitor in 2020 will be AXA Investment Managers sold the property industrial 5.5%
new use opportunities and strategies will Cardiff Council’s proposal to build a 15,000 10 5
to a private investor for £3.75m, 6.31% NIY. office 5.25%
need to be formulated for the larger footprint capacity indoor arena on the site of the Red retail high street 5.5%
0 retail out of town 6.25% 4
units. For example, House of Fraser on St Dragon, the regeneration of the area around 15 16 17 18 19
3 Capital Quarter. In September 2019 15 16 17 18 19
Mary Street accounts for 1.72 acres of ground Cardiff International Pool and the Viola ice Mayfair Capital acquired the freehold
Alder King Market Monitor 2020
Alder King Market Monitor 2020
floor prime city centre frontage, now up for arena and a new indoor adventure sports interest for £27.9m, 5.8% NIY. The property
sale via Receivers. centre on the vacant former Toys R Us. Leisure headline rent Investment by sector
comprises 125,000 sq ft of Grade A office
£psf %
accommodation over seven storeys. Tenants
40
Cardiff Central bus interchange has been include Admiral Insurance and Which?
40
40
40
40
40
given the go-ahead as part of a 500,000 sq ft Consumer Services and provides 10.5 years
30
development which will contain circa 8,000 to expiry and 9.7 years to break options.
sq ft of retail space. Given the footfall, strong 0% 20
demand and pre-lets are expected.
13
13
13
13
13
10 office 40%
11
11
11
11
11
industrial 15%
cinema retail 36%
health & fitness 0 other 9%
15 16 17 18 19
A3/A4
13 14
“Industrial
take-up was largely
influenced by the
92,000 sq ft letting
to Amazon at
Exeter Gateway.”
Mercury Business Park, near Cullompton. Courtesy of GPG Developments.
CGI of The Lookout, Exeter Business Park.
Courtesy of Summerfield Developments Ltd.
Exeter Exeter Trade Park, Marsh Barton, Exeter. Courtesy of Graftongate. Kestrel GTX, Exeter. Courtesy of Staunton Property.
OFFICES Take-Up
INDUSTRIAL & LOGISTICS Take-Up
Noel Stevens T 01392 353093 E nstevens@alderking.com 000s sq ft Noel Stevens T 01392 353093 E nstevens@alderking.com 000s sq ft
200 800
200
199
758
Exeter will see a major increase in office only new build space in the market and, as The supply of industrial buildings remains refurbishment more attractive. Staunton
175
150 600
167
supply in 2020 as over 180,000 sq ft of space rents for refurbished space rise, it represents severely restricted. This situation is set to Property is leading the charge on Sowton
144
comes to market following the refurbishment good value at £20 psf. Pre-sale and pre-let 27.6% 100 improve in 2020 with a marked improvement with Kestrel GTX. The 42,000 sq ft warehouse 1.4% 400
of Winslade Park. Refurbished stock has been opportunities are also available at SkyPark in the development pipeline. Prego was formerly occupied by Bishops Move
355
as relevant to the office market as it has to enabling larger occupiers the ability to have a Investments are on site with the 32,000 and was subject to a high quality overhaul
277
50 200
273
255
the industrial market. 2018 and 2019 saw bespoke building. sq ft Matford Green Trade Park scheme in late 2019. Now on the market, the space
much of the take-up absorbed by well-priced 0 and the first phase of GPG Developments’ represents high quality accommodation at a 0
refurbished stock where rents hit £16.50 psf The Exeter market will see further high 15 16 17 18 19 Mercury Business Park on Exeter Road near lower cost than that required for new build. 15 16 17 18 19
high st
vs new build rents of £20 psf. This shows that quality new build stock coming to market. The Cullompton is also underway. The quoting rent equates to £6.90 psf.
occupiers do seek out quality, regardless of Lookout at Exeter Business Park has planning Supply Supply
the wider market conditions. permission and works are due to start on site 000s sq ft Paloma Capital and Graftongate completed Take-up in 2019 was subdued by the lack 000s sq ft
in early 2020. The 6,800 sq ft two storey 400 the purchase of 6.2 acres on Marsh Barton of suitable supply and the wider political 250
251
With this large increase in supply, we can building has been designed by LHC Architects Road at the end of 2019. The site includes situation. There were however some
200
expect to see movement in the market. to offer next generation space. 300 the former Vospers Ford building which is highlights. The sale of Vospers’ former Fiat/
210
195
300
Occupiers will relocate from the city centre earmarked for demolition, making way for Arbarth and Alfa Romeo showrooms to
272
68% 50% 150
167
165
and out of town, freeing up space for the next Take-up last year was limited by supply. Good 200 new industrial/logistics units. The remaining Ability Matters showed the strong demand
100
197
wave of occupiers. quality refurbished space like Aperture and building will be refurbished with the addition for freeholds and long leaseholds. Amazon
179
162
Vantage Point, both on Pynes Hill, saw strong 100 of a coffee/food unit to the Marsh Barton has now opened its 92,000 sq ft distribution 50
A single new build floor remains at 1 Tiger take-up. With rents offering a discount of at Road frontage. facility at Exeter Gateway.
0 0
Moth Road, SkyPark. This represents the least £3.50 psf to new build, these modern air 15 16 17 18 19 15 16 17 18 19
conditioned spaces saw strong demand at the There is a good supply of development land Upwards pressure on rents continued in 2019
Alder King Market Monitor 2020
Alder King Market Monitor 2020
top end of the market. with SkyPark, the Church Commissioners due to the lack of supply and construction
Headline rent site and AirPark offering land to the east of cost inflation. The new units at Matford Headline rent
The city centre still offers virtually no £psf Exeter and the M5. The Westexe development will attract rents of £9.50 psf. Higher £psf
20 10
supply. The hope is that Exeter City Council’s site is also available to the west. rents should be achieved at the Paloma/
20
20
19.5
Citypoint development will address this in the Graftongate development as these units will
18.5
8
17.5
17.5
17.5
17.5
17.5
8.90
8.90
15
next few years. 2020 will see the rise of the refurb as ageing benefit from road frontages and be very
16
8
8
8
0% 10
stock in Sowton and Marsh Barton combined attractive to the trade counter market. 0% 6
Rents remained static in H2 2019 with the with rising construction costs makes 4
£20 psf achieved at 1 Tiger Moth Road,
5
SkyPark remaining the city’s headline figure. 2
The next phase of new offices will need to 0 0
Artist’s impression of Citypoint, Exeter. achieve rents of £22.50 psf + to be viable. 15 16 17 18 19 15 16 17 18 19
Courtesy of Exeter City Council. city centre out of town
15 16
CGI of House of Fraser redevelopment. Courtesy of Prydis HOF Ltd.
Exeter Senate Court, Exeter.
RETAIL & LEISURE Zone A headline rent
INVESTMENT Value of investment transactions
Noel Stevens T 01392 353093 E nstevens@alderking.com £psf Oli Stretton T 0117 317 1121 E ostretton@alderking.com £ms
250 200
Scott Rossiter T 01392 353089 E srossiter@alderking.com
CPG Developments’ Moor Exchange scheme The demand for fast food and drive to and 200
177.7
150
210
210
210
210
210
secured planning permission at the third drive-thru coffee outlets continues to be Exeter saw circa £72m of transactions in 2019, down on 2018’s total of circa £82m.
attempt. The potential tenant line-up includes strong for the right sites. We are involved in 0% 150
11.5% 100
Next, M&S Simply Food, Boots, Costa Coffee several schemes where new development of 100 Centurion Mill. This freehold warehouse Senate Court. Prydis disposed of this 33,362
81.8
and McDonalds. This shows that not all retail these types of pods will take place to meet unit with office and retail accommodation sq ft office to an undisclosed buyer for
72.4
50
22.7
50
18.6
is dead. It does also indicate the trend of consumer demand. was purchased by South Somerset Council £9.36m. The property is situated in the heart
food and beverage users underpinning any 0 in October 2019. The property totals 74,696 of Exeter city centre’s business district and 0
scheme. Demand from petrol filling stations and EV 15 16 17 18 19 15 16 17 18 19
sq ft and is 85% occupied by Stovax Heating spans over four storeys. Tenants include Foot
charging providers is also good. The major Group Limited, with the remaining space Anstey, The Insolvency Service and Prydis.
2019 saw three other out of town schemes petrol stations are keen to open more sites in Out of town headline rent taken by Devondale Electrical Distributors The transaction was a sale and leaseback to Prime yields
fall by the wayside. Whilst the reasons behind the area and would incorporate EV charging £psf Limited and Greggs PLC. The purchase price Prydis who remain in occupation. %
each not proceeding was varied, it does within them. There is also a trend towards 40 was £4.05m, 7.25% NIY. 8
reinforce the need for planning to be granted standalone EV charging and the emergence 202 High Street. The City Pub Group
38
38
35
35
35
on deliverable schemes to provide the of other green fuel like hydrogen. Green 30 Malvern House. Cabot Trustee and Polly purchased this 5,812 sq ft restaurant unit for 7
amenity needed in out of town locations. The businesses are increasingly keen to invest to Moore Homes acquired the freehold interest £1.74m. The unit is single let to Prezzo.
development at Moor Exchange is a positive meet future demands for these fuels in key
0% 20 in this office. The 6,670 sq ft property is 6
for office and industrial occupiers in the east centres like Exeter. single let to Gro Group and produces industrial 5.25% 5
of the city. Without this type of amenity, jobs 10
£75,500 per annum. The purchase price office 5.75%
growth will be restricted. was £1.05m, 7.2% NIY. retail high street 5%
0 retail out of town 6.25% 4
15 16 17 18 19 15 16 17 18 19
In the city centre, House of Fraser finally
Alder King Market Monitor 2020
Alder King Market Monitor 2020
closed its doors in 2019. The store has been
purchased by wealth managers Prydis and Leisure headline rent Investment by sector
£psf %
will be converted to a hotel and roof top
50
bar. This repurposing of such an important
location in the city centre will be a barometer 40
42
42
42
42
for the success of the high street and Exeter
40
30
as a whole. There continues to be strong 0%
student bed demand and growth at the 20
university which helps support the hotel
17
17
17
17
office 34%
sector. 10
13
12
12
12
12
industrial 40%
11
cinema retail 9%
health & fitness 0 other 17%
CGI of Moor Exchange, Exeter. Courtesy of CPG. A3/A4
15 16 17 18 19 Malvern House, Exeter.
17 18“Gloucester’s
industrial take-up
totalled 705,000
sq ft, the highest
take-up for over
15 years.”
The new Dowty Propellers facility, Gloucester Business Park.
Ecclesiastical Insurance office under construction.
Gloucester
OFFICES Take-Up
INDUSTRIAL & LOGISTICS Take-Up
Adrian Rowley T 01452 627133 E arowley@alderking.com 000s sq ft Adrian Rowley T 01452 627133 E arowley@alderking.com 000s sq ft
250 800
Construction of the new headquarters The growth in the supply of serviced office 200 Gloucester’s industrial market performed 174,000 sq ft in three buildings of 45,000
220
705
700
600
650
building for Ecclesiastical Insurance Group at space continues and Regus now have two strongly in 2019, with take-up of space sq ft, 56,000 sq ft and 73,000 sq ft. The
Gloucester Business Park is progressing well, offers in the city centre - one an expanded 27% 150
totalling circa 705,000 sq ft, the highest scheme hit practical completion in December 8.5%
160
500
400
150
145
145
with developers Arlington due to complete offer in The Docks and the other, a newly figure for over 15 years. 2019 with the 45,000 sq ft building let to
400
100
the building in June 2020. The 65,000 sq ft opened facility in Worcester Street providing Adey Innovation before completion. 200
50
pre-let remains one of the most significant some 37,000 sq ft. Out of the centre, The largest single completion was the
office transactions in the city for many years. BizSpace has completed its refurbishment 0 183,000 sq ft new manufacturing building Elsewhere, Howard Tenens has started 0
development at Barnwood Point totalling 15 16 17 18 19 constructed by Arlington for GE Aviation construction on the next phase at Severn 15 16 17 18 19
Total take-up for the year reached approximately 38,000 sq ft. at Gloucester Business Park which sees the Distribution Park, Sharpness. Bristol Gateway
approximately 160,000 sq ft and was made Supply historic Dowty Propellers operation returning 2 will provide a single building of 186,000 Supply
up of predominantly out of centre space. The promotion of Gloucester City Council’s 000s sq ft to the former Gloster Aircraft Company’s site. sq ft and is set to be completed in Q3 2020. 000s sq ft
Supply currently totals 180,000 sq ft. It Kings Quarter scheme continues where there 200 Also at Gloucester Business Park, existing The scheme can provide a total of 467,000 400
400
appears that there will be an absence of is the opportunity to provide some 40,000 occupier G-TEKT has recently occupied a new sq ft in three buildings and follows the
180
180
350
350
350
speculative new build space, meaning supply sq ft of new build office space alongside new 150 150,000 sq ft manufacturing facility which successful development of Bristol Gateway 1 300
is mostly a mix of prime refurbished and residential and retail elements. The planned will be used to service a JLR automotive where 169,000 sq ft was built speculatively
140
140
140
28.6% 0%
250
secondary space. This is likely to fuel further demolition of Bentinck House as part of the 100 contract. and let to CM Downton Logistics. 200
design and build activity for delivery of larger enabling works is set to greatly improve
50 100
more bespoke requirements. linkage between the city centre and the train St. Modwen has continued its impressive Chancerygate is underway with its
and bus stations. programme of speculative development and speculative Furlong Park scheme at
0 0
15 16 17 18 19
letting. At Gateway 12, this has included the Bishops Cleeve, Cheltenham where it is 15 16 17 18 19
letting of the 34,000 sq ft Unit 4A to WMB constructing 92,865 sq ft in nine units for
Alder King Market Monitor 2020
Alder King Market Monitor 2020
and the 24,000 sq ft letting of Unit 4 to sale. Chancerygate is also bringing forward
Headline rent Rochling. The 67,000 sq ft Unit 1 is the last Festival Trade Park located in Kingsditch Headline rent
£psf available space at Gateway 12. Trading Estate, Cheltenham later this year £psf
25 8
which will provide 91,187 sq ft in 14 units
20 St. Modwen has also opened its new which will be available to let.
7
7
21.50
21.50
6.75
6
development branded St. Modwen Park
20
6.5
19
6.25
18.5
0% 15 Gloucester located adjacent to Junction 12 Supply in Gloucester is currently only 0% 4
10
of the M5. The first speculative phase of 350,000 sq ft, the majority of which is mid-
11.75
11.75
11.75
11.75
11.5
development has been completed comprising box new build space.
2
5
0 0
15 16 17 18 19 15 16 17 18 19
city centre out of town
19 20“At £123.8m,
Gloucester’s 2019
investment volume
ranks among
the strongest
on record.”
Unit K, Waterwells Drive, Gloucester.
CGI of Downing’s Malthouse, Bakers Quay. Courtesy of Rokeby Developments.
Gloucester Goodridge Trading Estate, Gloucester.
RETAIL & LEISURE Zone A headline rent
INVESTMENT Value of investment transactions
Adrian Rowley T 01452 627133 E arowley@alderking.com £psf Oli Stretton T 0117 317 1121 E ostretton@alderking.com £ms
125 125
Adrian Rowley T 01452 627133 E arowley@alderking.com
123.8
The second phase of the Bakers Quay Paloma Capital’s mixed use scheme, Access 100 100
100
100
100
100
100
100
100
100
100
100
development has started, with Rokeby Park located at the junction of Eastern Investor sentiment in Gloucester was strong throughout 2019. The annual investment
Developments commencing works to Avenue and Metz Way, has secured planning 0% 75
volume ranks among the strongest on record and average sales volumes exceeded the 81% 75
68.33
refurbish Downings Malthouse. This is a consent for development. The scheme
62.7
50 historical average. 50
significantly important development project includes some 55,000 sq ft of non-food retail
37.2
25 25
in that it not only provides a total of 20,000 space, together with a drive-thru restaurant,
32.7
Bamfurlong Industrial Park. This freehold Unit K Waterwells Drive. This freehold
sq ft of retail and leisure space together public house and hotel. Eastgate St 0 industrial estate located west of Cheltenham single let industrial unit was sold by BMO Real 0
with 70 residential apartments but also that 15 16 17 18 19 15 16 17 18 19
Kings Walk town centre provides 28 units totalling Estate Investments to Exeter Property Group
it restores and brings back into use one At Kingsway, Robert Hitchins has started 201,936 sq ft. The freehold interest was for £6.49m, 6.3% NIY. The unit is 71,737 sq ft
of Gloucester’s most iconic historic dock construction of a new 24,000 sq ft Lidl Out of town headline rent acquired by The Dunmoore Group for and is single let to Anixter for two years. Prime yields
buildings. In addition, the development foodstore as well as new buildings for B&M £psf £7.45m, 4.52% NIY. The annual rental %
provides the linkage between Phase 1 Bakers and Pure Gym, all adding to the amenity of 40 income is £358,917 with the average passing Gallagher Retail Park. Legal & General 8
Quay and Gloucester Quays and includes the the south Gloucester locality. Robert Hitchins rent of £1.77 psf significantly lower than disposed of a Sainsbury’s supermarket in
35
35
35
35
re-construction of the waterside Transit Shed is also due to commence the first phase 30 current market rates. The site provides Cheltenham to Supermarket Income REIT 7
building where pre-let terms are close to of infrastructure works to open up its new asset management opportunities with for £60.4m, 5.25% NIY. The supermarket
0%
25
being agreed. Innsworth District Centre which will provide 20 high reversionary potential. The property comprises 62,000 sq ft net sales area, 6
opportunities for food retail, non-food retail, attracted a high level of interest, resulting in including a 12-pump petrol filling station and industrial 5.25%
restaurant and health related uses. Close by 10 5
30 bids. 400 car parking spaces. 13 years unexpired office 5.25%
within the wider development, there are also with 5-yearly upward only RPI linked rent retail high street 6.5%
0 retail out of town 6.75% 4
allocations for office and business uses. 15 16 17 18 19
Goodridge Trading Estate. This detached reviews. 15 16 17 17 19
single storey industrial unit was acquired by
Alder King Market Monitor 2020
Alder King Market Monitor 2020
a private investor for £1.9m, 5.62% NIY. The St Oswalds Retail Park. Gloucester City
Leisure headline rent Investment by sector
unit is let to Speedy Asset Services for 9.7 Council acquired this multi-let retail park
£psf %
years with a tenant break option in 4.7 years. from Hammerson for £54m, 8.5% NIY.
40
The property totals approximately 18,923 Tenants include B&Q, DW Sports, Argos and
sq ft on a site of circa 1.95 acres. Alder King Homesense.
30
32
32
32
32
32
acted for the vendor.
0% 20
10 office 8%
12
12
12
12
12
industrial 26%
9
9
9
9
9
cinema retail 49%
CGI of the Lidl foodstore, Kingsway. health & fitness 0 other 17%
15 16 17 18 19
Courtesy of Robert Hitchins. A3/A4
21 22INDUSTRIAL & LOGISTICS Take-Up
Andrew Ridler T 0117 317 1071 E aridler@alderking.com 000s sq ft
100
Demand for good quality industrial space Terms are agreed to let the city’s largest 80
85
remains strong, with a number of active available standing unit comprising 5,040 sq ft
60
requirements, particularly for freehold space. at Locksbrook Road Trading Estate which 33%
However options within the city are almost is fast becoming the city’s favoured trade 40
non-existent. location.
20
10
10
15
15
Supply is limited to second hand stock. The imbalance in demand and supply means 0
There has been no speculative industrial/ headline rentals for new space of up to 2,000 15 16 17 18 19
distribution development in Bath and none sq ft are now close to £10 psf.
is expected for the foreseeable future with Supply
alternative uses able to significantly outbid 000s sq ft
industrial and logistics occupiers. 100
80
Occupiers struggling to find accommodation
85
of a modern specification are therefore being 60
forced to consider locations outside Bath,
50%
40
with east Bristol of particular interest.
20
10
20
5
5
0
15 16 17 18 19
Headline rent
Milsom Street, Bath. £psf
10
10
9
8
8.75
8.5
8.5
11% 6
Bath
4
2
Unit 1 Avon Trading Estate, Bath.
0
15 16 17 18 19
OFFICES Take-Up
RETAIL & LEISURE
Tom Dugay T 0117 317 1094 E tdugay@alderking.com 000s sq ft Rebecca Harries T 0117 317 1086 E rharries@alderking.com
125
120
Despite strong demand for flexible modern significant amount of interest in the scheme. 100 Bath’s retail market remains relatively Zone A headline rent Out of town headline rent Leisure headline rent
111
office accommodation, Bath continues to resilient and vacancy levels are low. There £psf £psf £psf
90
90
75 88
struggle with a limited supply of immediately Take-up in Bath in 2019 reached circa 90,000 19% is strong demand from the independent
available space which is impacting take-up. sq ft, a figure in line with the 10 year average 50 sector for smaller, secondary units. 200 40 40
205
205
200
200
although down on 2018. Take-up was again
185
35
35
35
35
35
25 150 30 30
Notable transactions of 2019 included the restricted by the lack of available space 2019 lettings included JD Sports at
30
30
letting of 9,500 sq ft at Chartist House and this led to a number of Bath occupiers 0 SouthGate, ProCook on Quiet Street and
25
25
25
100 20 20
to Shift Active Media and 15,000 sq ft at seeking options outside of the city. 15 16 17 18 19 The Entertainer on New Orchard Street.
15
15
Pinesgate which is currently under offer and Milsom Place saw a spate of lettings, with
14
14
14
14
50 10 10
11
11
11
11
due to complete shortly. Keynsham has continued to benefit from Supply more focus on turnover deals. Swoon
the lack of available space in Bath and the 000s sq ft Gelato and Bandook Indian Kitchen both 0 0 0
15 16 17 18 19 15 16 17 18 19 15 16 17 18 19
The TMT sector remains the most active Chocolate Factory has let its final full floor. 125 recently took space here.
cinema health & fitness A3/A4
125
sector within Bath in terms of the amount Mitie acquired 16,915 sq ft meaning that
100
of space taken and the number of individual only 5,200 sq ft now remains from a total of
95
transactions. This is closely followed by the 95,000 sq ft.
17% 75
INVESTMENT
82
professional services sector.
75
70
50
Headline rents in Bath city centre remain at Oli Stretton T 0117 317 1121 E ostretton@alderking.com
The supply of immediately available, modern, £31 psf. This is set to increase with No 1 Bath 25
open plan accommodation within the city Quays under construction and likely to set
0 Significant 2019 transactions included: Investment by sector Value of investment Prime yields
remains limited. Total supply stands at new headline rental levels during 2020. 15 16 17 18 18 % transactions %
circa 82,000 sq ft which represents only 12 £ms
The Podium. DTZ Investors acquired the
Alder King Market Monitor 2020
Alder King Market Monitor 2020
months’ supply. This figure includes 30,000 200 8
Headline rent freehold interest for £69.7m, 4.1% NIY. The
sq ft over two floors at Pinesgate, the
property is let in part on a long lease to
189
majority of which is under offer. £psf 150 7
40 Waitrose comprising 63,299 sq ft, a 26,427
sq ft library and 173 room Hilton Hotel. 100 6
Supply in Bath will eventually improve now
107.3
96
30
that contractors are on site at the much
31
31
31
31
Weston Lock Retail Park. Bath & North East
33.5
50 5
awaited No 1 Bath Quays. This development 0%
20.4
26
20 Somerset Council purchased the freehold
will deliver a new landmark building of circa
interest for £17.85m, 5.15% NIY. The retail 0 4
45,000 sq ft together with 46,000 sq ft 15 16 17 18 19 15 16 17 18 19
10 park is located on the outskirts of Bath and
of smaller studio space in the refurbished industrial 4.75%
is anchored by Curry’s, PC World and M&S
Newark Works. Practical completion is office 15% office 5%
0 Foodhall. retail 59% retail high street 4.25%
scheduled for 2021 and there is already a CGI of No 1 Bath Quays. 15 16 17 18 19
other 26% retail out of town 5.75%
city centre
23 24INDUSTRIAL & LOGISTICS Take-Up
Andrew Maynard T 01823 444879 E amaynard@alderking.com 000s sq ft
400
Demand for new build continues due to a Further north, the former Travis Perkins site
350
300
325
lack of good quality available units. We are in off Bristol Road has undergone a complete
detailed discussions with two occupiers for transformation, now offering a range of 12.5% 200
the first buildings to be built on Peninsula units from 5,000 to 40,000 sq ft targeting
190
23, totalling circa 65,000 sq ft. These will be the trade counter market, with a new build 100
120
completed within the next two years, building second phase in the pipeline.
105
on the success of the sister development, 0
Woodlands Business Park. Peninsula 23 totals Progress at Hinkley Point C continues to set 15 16 17 18 19
15 acres and will provide opportunities for records, with the site becoming a ‘forest of
roadside, office and industrial occupiers over cranes’ in the past 12 months. This includes Supply
the next few years. Big Carl, the world’s largest crane, standing 000s sq ft
250m tall and with the capacity to lift 5,000 400
Elsewhere, the first speculative units have tonnes in a single lift. Below ground, work has
recently been completed on Bridgwater started on tunnels 33m beneath the seabed 300
325
300
Gateway, just off J24 of the M5, comprising of the Bristol Channel to provide 120,000
6.7%
275
240
five terrace units totalling 26,905 sq ft, litres of cooling water per second to the 200
225
with the ability to consolidate units to power station.
accommodate larger enquiries. 100
Infrastructure works have commenced on
0
the 365 acre Gravity smart campus near 15 16 17 18 19
Bridgwater. The mixed use innovation
campus will be home to 150 high value
businesses associated with advanced Headline rent
The Big Carl crane at Hinkley Point. £psf
manufacturing, robotics, artificial intelligence
10
and electric vehicles. Alder King advised on
the sale of the former BAE Royal Ordnance 8
8.5
8.5
Factory site.
8
8
8
0% 6
Bridgwater
4
2
Dunball Trading Estate, Bridgwater.
0
15 16 17 18 19
OFFICES Take-Up
RETAIL & LEISURE
Andrew Maynard T 01823 444879 E amaynard@alderking.com 000s sq ft Andrew Maynard T 01823 444879 E amaynard@alderking.com
100
A delay in the opening of the first Phase 2 Office accommodation at J24 continues to 75
Aldi’s new store is under construction at Zone A headline rent Out of town headline rent Leisure headline rent
building at the Somerset Innovation Centre be a popular choice, with rental values for Northgate and is expected to open in 2020, £psf £psf £psf
80
75
has highlighted an on-going lack of out of existing accommodation generally lower 50% 50 following which its existing store in Eastover,
town office space for occupiers looking for than those on the business parks around which is under offer to an undisclosed 50 20 20
50
40
good quality accommodation of between J23. Bridgwater Gateway has completed retailer, will close.
19
19
25 40
44
17
17
17
15 15
42
42
42
42
1,500 and 5,000 sq ft. roads and infrastructure with a new 100 bed
25
15
15
15
15
15
30
Premier Inn completed in June 2019 and a 0 As well as the new 100 bed Premier Inn on
12
12
12
12
12
10 10
Chadwick Holdings have been quick to react retail scheme including Costa Coffee in the 15 16 17 18 19 Bridgwater Gateway, a new 144 bedroom Ibis 20
7.5
7.5
7.5
to the situation by converting space within pipeline. The developers also have plans for a hotel is under construction on Woodlands
7
7
5 5
10
The Exchange on Express Park from gym number of new office buildings on the park. Supply Business Park. Located next to the Somerset
to office use, with Parentpay taking the 000s sq ft Energy Innovation Centre, it will open in Q4 0 0 0
15 16 17 18 19 15 16 17 18 19 15 16 17 18 19
remodelled space last summer and relocating 100 2020.
cinema health & fitness A3/A4
from several smaller office suites within the
same building. Demand for The Exchange, 75
85
75
75
which provides a range of office suite sizes,
20% INVESTMENT
has been consistent and headline rental 50
60
60
levels have remained the same as in 2018. Oli Stretton T 0117 317 1121 E ostretton@alderking.com Andrew Maynard T 01823 444879 E amaynard@alderking.com
25
Despite the delay in the opening of the
0 Significant 2019 transactions included: Investment by sector Value of investment Prime yields
completed Phase 2 building at the Somerset 15 16 17 18 19 % transactions %
Innovation Centre, construction commenced £ms
Dunball Trading Estate. South Somerset
Alder King Market Monitor 2020
Alder King Market Monitor 2020
on the final building - an Enterprise Hub 40 8
Headline rent Council purchased the freehold of the
providing 7,100 sq ft of office and light
£psf Trellborg Unit on Dunball Trading Estate for
industrial space on Woodlands Business Park. 30 7
20 £2.82m, 7.5% NIY. The unit totals 36,050
sq ft, with a passing rent of £225,330 per
25.6
20 6
annum which is due to expire in January
21.9
15
11.6
2022. Alder King acted for the purchaser.
15
15
15
9.1
14.5
14.5
10 5
3%
3.5
10
0 4
8
8
8
8
8
15 16 17 18 19 15 16 17 18 19
5
industrial 5.5%
office 2% office 6.75%
0 industrial 18% retail high street 7%
The Exchange Building, Express Park. 15 16 17 18 19
retail 80% retail out of town 6.75%
town centre out of town
25 26You can also read
