2022 Market Monitor South West of England and - Alder King
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Market Monitor South West of England and South Wales Property Review 2022 Property intelligence you can build on
Contents
3 Key Market Trends
5 Key Alder King Transactions
7 Bristol Offices & Industrial & Logistics
9 Bristol Retail & Leisure and Investment
11 Cardiff Offices & Industrial & Logistics
13 Cardiff Retail & Leisure and Investment
15 Exeter Offices & Industrial & Logistics
17 Exeter Retail & Leisure and Investment
19 Gloucester Offices & Industrial & Logistics
21 Gloucester Retail & Leisure and Investment
23 Bath
25 Bridgwater Foreword
27 Plymouth Market Monitor examines
29 Swindon the occupational and
31 Taunton investment markets in
33 Truro 11 key centres in the
35 North Somerset South West of England
37 Residential Development Land and South Wales.
38 Planning
Simon Price
Head of Agency
Front cover: CGI of 4 Glass Wharf, Bristol. Alder King
Courtesy of Candour Group/Tristan Capital. CGI of the University of Gloucestershire’s new campus.
SUMMARY Key South West Centres
Office and Industrial Take-up and Supply (000 sq ft)
After a second rollercoaster year, we start 2022 with a strong • The increasing acceptance of the benefits of office working
Office Office Industrial Industrial
sense of optimism. The economy and commercial property saw office take-up return to pre-pandemic levels in Exeter, Year
Take-up Supply Take-up Supply
markets rebounded strongly last year following the lifting Gloucester, Bath, Bridgwater, Plymouth, Taunton and Truro. 2021 1,730 2,415 5,557 4,769
of lockdown restrictions and are poised for further growth Q4 take-up in Bristol city centre reached its second highest
2020 1,393 2,695 6,395 4,471
this year. level recorded for a single quarter since 2016. A growing
2019 1,745 2,356 4,208 5,872
number of occupiers, with an enhanced focus on employee
Key features of the market: 2018 1,880 2,319 3,880 4,816
wellbeing and sustainability, are reducing the size of their
• There remains an insatiable appetite for industrial/logistics accommodation but trading up in quality. This in turn is 2017 1,719 2,490 5,054 3,578
space, driven by ongoing changes in consumer spending. driving up office headline rents.
The South West recorded over 5.5 million sq ft of take-up Cardiff
• The loss of some well-known national retailers has allowed
Alder King Market Monitor 2022
Alder King Market Monitor 2022
in 2021, another year above the five year average of 5 Office and Industrial Take-up and Supply (000 sq ft)
a new mix of independent operators to acquire better
million sq ft. This would have been higher still if not for Office Office Industrial Industrial
located space, enhancing the vibrancy of our towns and Year
a significant shortage of good quality available supply. Take-up Supply Take-up Supply
cities. The relaxation in planning has also facilitated the
New developments in Greater Bristol, Exeter, Gloucester, 2021 241 797 756 915
conversion of redundant space to alternative uses.
Chippenham and Truro were all snapped up before or 2020 305 692 595 1,150
during construction by forward-looking occupiers, leading • After a strong rebound in pricing last year, we expect 2019 398 1,012 1,184 1,378
to improved rentals, lease terms and capital values. investment returns to stabilise in 2022 and investor
2018 526 1,020 892 1,443
requirements to be more sector-agnostic, with greater
2017 768 1,073 1,111 957
focus on asset quality and location.
2
Key Market
Trends
Wapping Wharf, Bristol. Courtesy of Jon Craig Photography.
OFFICES SUMMARY INDUSTRIAL & LOGISTICS SUMMARY RETAIL & LEISURE SUMMARY INVESTMENT SUMMARY
Simon Price Andrew Ridler Rebecca Harries Oli Stretton
T 0117 317 1084 T 0117 317 1071 T 0117 317 1086 T 0117 317 1121
E sprice@alderking.com E aridler@alderking.com E rharries@alderking.com E ostretton@alderking.com
Whilst the office market continued to feel the impact of the global The industrial and logistics market maintained its resilience and was Occupiers had to be resilient throughout 2021 to keep up with 2021 was a year of recovery for both the economy and real estate,
pandemic during 2021, several key markets across the region proved the strongest performing sector across the region, contributing to constantly changing government guidelines brought on by the with a strong rebound in pricing driven largely by the boom in
remarkably resilient delivering strong take-up and new headline rental another record year for national UK take-up. Regionally this is best pandemic. As we move into 2022, we anticipate an increase in high logistics. In 2022, we expect returns to stabilise and the influence of
level highs. demonstrated by a 118% year on year increase in take-up in Exeter street footfall and hope to see consumer confidence improve. COVID to decrease over time.
albeit in some regional centres the lack of immediately available
Many occupiers have adopted at least a short term move to hybrid space is constraining take-up. The food and beverage sectors have however performed well, In the office sector, investors are recognising the shift in occupier
working but the second half of the year saw growing momentum in especially those offering home delivery and click and collect options behavior towards less but better quality space and are now targeting
terms of greater numbers returning to offices for at least 2-3 days Demand is driven by e-commerce businesses, government and have the benefit of outside seating. best in class or opportunities to reposition buildings accordingly.
a week before the temporary change in Government guidance in investment in infrastructure, supply chain safeguarding and some
December. The increasing acceptance of the benefits of office working emerging signs of the repatriation of manufacturing. The logistics Local markets have also fared well and many smaller towns and As we gain a more accurate picture of the post-pandemic world,
including social interaction, collaboration, community and training is sector, particularly internet fulfilment, and manufacturers/added suburbs are becoming more vibrant with a new mix of independent areas of uncertainty will reduce. The retail sector should benefit as
now positively impacting on market activity levels. value engineering occupiers also drove demand. operators taking advantage of better located space previously occupiers feel more confident in making long-term decisions about
unavailable to them. where they need to be physically present.
By far the most noticeable trend in the market over the last 12 months The majority of centres are supporting speculative development, with
has been the increasing focus on ESG and wellbeing from occupiers, St. Modwen, Mountpark, Panattoni, Summerfield, Tristan Canmoor, Many retailers are improving the in-store customer experience to We expect to see continued interest in alternative and specialist
developers and investors. This is having a major impact on both KMW, Rockhaven and Trebor all active across the region. entice people through the door. As well as customising the online sectors, such as data centres, life sciences and energy infrastructure,
new build and refurbishment design in particular in relation to M&E shopping experience, they are personalising it with AI technology and although the scale of investor appetite will likely outweigh the actual
Alder King Market Monitor 2022
Alder King Market Monitor 2022
specification and the provision of building amenities. The mid box market performed well with a surge of activity using social media as another platform to sell. opportunity.
particularly in Bristol and Gloucester. There is strong potential for
The star performer in the region was once again the Bristol city centre pre-lets and pre-sales with the lack of supply leading to improved The new Use Class Order is making it easier for redundant retail We anticipate that investors’ requirements will evolve toward a more
market where Q4 take-up reached its second highest single quarter level rentals, lease durations and capital values. space to be converted to other uses without the need for planning sector-agnostic approach, where the quality of the individual assets
since 2016, beaten only by Q4 2019. Exeter, Gloucester, Bath, Bridgwater, permission and this will continue to evolve as more offices, healthcare and their locations become more important.
Plymouth, Taunton and Truro also recorded increased take-up. For some, affordability will be an issue as the rental gap between uses and gyms take up vacant units across the region.
new and good quality secondhand space is reducing significantly. We International investors were extremely active in 2021 and we see no
We anticipate that 2022 will see a continuation of the trend of expect further upward pressure on rents, particularly for those facing sign of this trend abating. We expect a particular focus on best in
occupiers going down in size but up in quality. Much of the second their first rent reviews on space acquired since 2015. class, future proofed assets with strong environmental credentials.
hand space being released into the market as a consequence continues Environmental, social and corporate governance is now a central
to attract interest from a range of alternative uses particularly in the Business confidence in the sector is robust which will lead to a thread that runs through every decision for investors, with the
residential, education and health sectors. further improvement in activity. decarbonisation of portfolios fundamental to risk management.
3 4
Key
Alder King
Transactions
1 1
ACQUISITIONS DISPOSALS
1. 450 Longwater Avenue, Green Park, 1. Exeter Trade Park
Reading Size 81,947 sq ft
Size 119,000 sq ft Three leasehold disposals for
Leasehold acquisition for Three Paloma Capital
2. Former Debenhams Store, 2. Gilbert House/37-39 Corn Street, 2 3
Kings Square, Gloucester Bristol
Size 215,278 sq ft Size 28,000 sq ft
Freehold acquisition for University of 2 3 Leasehold disposal for IV Real Estate
Gloucestershire
3. 10 Wapping Road, Bristol
3. 1 Trinity Quay, Bristol Size 15,190 sq ft
Size 75,000 sq ft Leasehold disposal for Bellborough Ltd
Leasehold acquisition for University
of Bristol 4. Centre Severn, Gloucester
Size 125,000 sq ft
4. OneThreeSix, Marylebone, London Pre-let for Peveril Securities
Size 44,500 sq ft 4 5
Leasehold acquisition for Smart Pensions 5. Unit C88, St. Modwen Park Chippenham
Size 88,827 sq ft
5. Unit B6 Heywood, Manchester Pre-let disposal for St. Modwen
Size 88,538 sq ft
Leasehold acquisition for 6. Highbay Warehouse, Llandrindod Wells
Macfarlane Group UK Ltd 4 5 Size 62,602 sq ft on 5.35 acres
Freehold disposal for Second
6. 1480 Aztec West, Bristol Propco Limited
Size 8,674 sq ft
Leasehold acquisition for Aardman 7. Stovax Heating Group Facility,
Animations SkyPark, Exeter
Size 196,000 sq ft 6 7
Alder King Market Monitor 2022
Alder King Market Monitor 2022
7. Land at Bow Street, Aberystwyth Leasehold disposal for St. Modwen
Size 3.3 acres
Freehold acquisition for Transport 8. Unit B Rockhaven, Bristol
for Wales Size 25,388 sq ft
Investment disposal for Rockhaven
Developments
9. Unit 22, Access 18, Avonmouth
6 7 Size 38,283 sq ft
Leasehold disposal for St. Modwen
8 9
5 6
Bristol
1 Trinity Quay, Bristol. Units 21-22 Access 18. Courtesy of St. Modwen. Armstrong Business Park, Yate. Courtesy of Baylis.
Market Factsheet Market Factsheet
OFFICES INDUSTRIAL & LOGISTICS
Simon Price Andrew Ridler
T 0117 317 1084 Take-up 000s sq ft T 0117 317 1071 Take-up 000s sq ft*
1,250 3,000
E sprice@alderking.com E aridler@alderking.com
2,902
1%
1,000 2,500
2,627
1,039
2,000
13%
• The Bristol office market delivered another • As was the case nationally, Bristol’s
2,285
939
931
750
year of strong performance, with the city industrial and logistics market - despite
764
756
1,500
1,606
centre once again the star performer. 500 Covid - delivered a strong full year
1,474
1,000
250
performance, with take-up increasing by
500
• Key city centre transactions included the 13% on 2020.
University of Bristol taking 74,373 sq ft at 0 0
17 18 19 20 21 17 18 19 20 21
1 Trinity Quay, Avon Street and the BBC 10 year average 894,000 sq ft • Demand is driven by e-commerce and the 10 year average 2.539m sq ft
*SW IAS 2021
60,251 sq ft at Bridgewater House, Finzels logistics providers seeking to expand their
Reach. Out of town NNB Generation Ltd network efficiency.
acquired 32,000 sq ft at 800 Aztec West.
Supply 000s sq ft Supply 000s sq ft
1,000 • Supply of immediately available space is a 3,000
• The most active sectors are the public significant concern and impacted take-up
3,000
2,750
33%
2,500
sector, TMT sector and, especially in the 750 in H2. Delays in the construction supply
815
2,000
11%
city centre, the flexible/co-working sector. chain and emerging labour shortages are
700
700
735
725
Several existing co-working operators took 500 impacting the delivery of new space. With 1,500
additional space with a number of new restrictions in supply, rentals and capital
1,500
1,500
1,000
entrants to Bristol currently active. 250 values will continue to increase.
1,000
500
• New developments are under construction 0 • Key transactions included Amazon’s 0
17 18 19 20 21 17 18 19 20 21
at EQ, Halo, Assembly Phase 2 and 1 10 year average 1.235m sq ft acquisition of Logicor’s 316,000 sq ft WA 10 year average 2.050m sq ft
Portwall Square, all of which already 316 on Severnside, Oxford Instruments’
have deals agreed during construction. pre-letting of 108,000 sq ft at Western
In addition Candour and Tristan Capital Approach, DFS’s acquisition of 245,000
started on site in Q3 at 4 Glass Wharf, a
Headline rent £psf sq ft at Cribbs Causeway, EBB’s pre-letting
Headline rent £psf
40 12
speculative scheme of circa 215,000 sq ft of 38,000 sq ft at St. Modwen’s Access 18 **
38.5
38
37.5
10
11
where PC is planned for Q4 2023. and Arnold Laver’s 25,000 sq ft acquisition
34.5
30
10
32.5
9.75
9.50
1% 0% 10%
at Rockhaven. 8
8.75
• Refurbishments performed well with Corn
23.5
23.5
20 6
23
22.5
22
Street, 10 Wapping Road, and Pivot + Mark • Competitive interest is common for 4
all securing lettings. Further major schemes City centre Out of town 10 freehold space. This is demonstrated by
2
are underway at 360 and Tower House. the pre-sale of Baylis Developments’ six
0 unit 30,000 sq ft scheme at Armstrong 0
17 18 19 20 21 17 18 19 20 21
• With a number of occupiers reducing City centre Out of town
Business Park in Yate. This trend is now **
for new sub-10,000 sq ft
in size but trading up in quality, city being seen with modern, well-specified,
centre headline rents had a strong year immediately available leasehold
Alder King Market Monitor 2022
Alder King Market Monitor 2022
with several top end deals on new stock accommodation.
currently in solicitors hands at record levels Most active sectors by take-up New build under Take-up by sector % Under construction/
of £40 psf plus. construction • There were a large number of occupier planned for 2022
and developer land sales, particularly on start
• City centre ‘grey space’ remains at
sustainable levels albeit there are signs
Public sector
Co-Working/
Flexible Severnside, totaling 138 acres which
will result in new development starts
75% 25%
Workspace Distribution Manufacturing
of increasing supply building in the out of during 2022.
665,000 SQ
town market during 2022.
TMT/Creative FT • A number of the existing large format
• The now strong focus of occupiers, buildings are under offer, forcing those
2.5 million SQ
services 202,000 sq ft already
developers and investors on ESG, wellness pre-let/under offer with requirements in excess of 100,000 FT
and community will continue to have an sq ft to look at design and builds.
increasing impact on take-up and design.
7 8
Bristol
FlightClub, Corn Street, Bristol. Courtesy of Red Engine. Assembly (Building A), Bristol. Central Approach, Western Approach, Bristol.
Market Factsheet Market Factsheet
RETAIL & LEISURE INVESTMENT
Rebecca Harries Oli Stretton
T 0117 317 1086 Zone A headline rent £psf T 0117 317 1121 Volume of investment transactions £ms
300 1,000
E rharries@alderking.com E ostretton@alderking.com
300
300
0%
250 800
845.4
200
29%
• The lockdown and unpredictable Significant transactions included: 600
687
200
200
200
200
200
657.9
government restrictions during 2021
180
180
180
150
170
170
533
150
150
150
severely impacted the city’s retail and 100
• Assembly (Building A). This single let 400
420
leisure market. The re-opening of retail in building was purchased by LCN Capital 200
50
April 2021 was significant and the recovery Partners from AXA in June 2021 for
is ongoing, however footfall levels remain 0 £134.2m reflecting a net initial yield of 0
17 18 19 20 21 17 18 19 20 21
lower than pre-pandemic. 4.71%. Building A totals circa 200,000 10 year average £476.81m
sq ft and has been pre-let to BT Plc on a 20
• Broadmead saw a number of high profile year lease and will become its regional HQ
store closures, including Debenhams and building accommodating more than 2,000
Out of town headline rent £psf Prime yields %
Marks & Spencer. Both properties are 30 staff. The property is a landmark waterfront 8
attracting interest for alternative uses. office building forming part of the new
30
30
0%
25
Temple Quarter Enterprise Zone. AXA is 7
25
25
25
20 Industrial 4.25%
• Things look more positive at Cabot Circus. constructing two further office buildings
Office 5%
Ann Summers has relocated to a larger 15 totaling circa 120,000 sq ft to complete the 6
Retail High Street 6.5%
unit and Foot Locker has opened a new 10 scheme. Retail Out of Town 6.25%
flagship store. Benedict Raven and eco- 5
5
lifestyle store Prior also opened in Quakers • Central Approach, Western Approach.
Friars. 0 Trebor Developments sold Central 4
17 18 19 20 21 17 18 19 20 21
Approach to AXA IM in May 2021 for
• The Mall at Cribbs Causeway is also £20.6m in a forward funding deal. This
attracting good occupiers with lettings to reflects a net initial yield of 3.60%. The
Tommy Hilfiger, Sky, ProCook and Ribble property is a circa 108,000 sq ft high tech,
Cycles. Harrods has also announced that
Leisure headline rent £psf manufacturing facility that is pre-let to Investment by sector %
40
it will open a ‘H Beauty’ as one of three Oxford Instruments on a 20 year lease
0% 0% 0%
new stores outside of London. The much- and is due for completion in March 2022.
41% 48%
35
35
35
35
35
30
anticipated Planet Ice also opened its The property will be a state-of-the-art new
doors in October. Cinema Health & Fitness A3/A4 20 manufacturing and office HQ for Oxford Office Industrial
Instruments.
15
15
15
15
15
• The city centre F&B sector continues 10
8% 2%
12
12
12
12
12
to be the most active, with a high level • One Castle Park. Circle Property sold One
of enquiries and new openings. Plans 0 Castle Park to Boultbee Brooks for £20m in
17 18 19 20 21 Retail Other
have been submitted to expand Cargo at September 2021 reflecting a net initial yield
Wapping Wharf and Flight Club, London of 4.70%. The property is a refurbished
Cocktail Club and Dirty Martini have all multi-let city centre office building
Alder King Market Monitor 2022
Alder King Market Monitor 2022
opened recently on Corn Street. totaling circa 80,000 sq ft with a weighted
unexpired lease term of 3.3 years to expiry Total sales by purchaser type %
• Aldi and Lidl have announced big plans with a total rent passing of £999,543 per
to open a number of new stores across annum.
Bristol and North Somerset. The new Aldi
at Avonmeads Retail Park is set to open • 15-33 Union Street. AEW UK REIT Institutional / Pension Fund 44%
imminently and Lidl has announced it has purchased 15-33 Union Street for £10.19m Property Company 51%
taken the former H&M store on Union reflecting a net initial yield of 8%. This Private Investor 4%
Street, Broadmead. circa 63,000 sq ft retail property is located Other 1%
opposite The Galleries Shopping Centre and
near Cabot Circus, in an area that has been
identified as a major regeneration area.
9 10
Cardiff
Euroclad, Wentloog Corporate Park, St Mellons. Courtesy of S Gambarini. Unit 1, Fforest Farm, Longwood Drive, Cardiff. The Port of Cardiff. Courtesy of Associated British Ports.
Owen Young
Market Factsheet Market Factsheet
T 029 2038 1996 INDUSTRIAL &
E oyoung@alderking.com LOGISTICS
OFFICES Take-up 000s sq ft • Cardiff’s industrial market continued to Take-up 000s sq ft
800 outperform other property classes due to 1,000
constant demand, particularly for space
21%
800
704
880
• Whilst many occupiers are still juggling 600 under 5,000 sq ft with high eaves and
27%
756
working from home and the office, others above average sized yards. 600
499
such as Admiral and First Source have 400
595
515
400
477
released space into the market. Our client • Enquiry levels remained strong as
357
305
200
feedback is that most would like a return industrial tenants were less impacted
241
200
to the office in some form, but new Covid by Covid, with some even benefiting,
0 0
variants are likely to further delay any 17 18 19 20 21
particularly distribution and trade counter 17 18 19 20 21
major decisions. 10 year average 507,000 sq ft businesses. 10 year average 594,000 sq ft
• Take-up is down 21% compared to the • The majority of deals in 2021 were for
previous year and 53% down on the five Supply 000s sq ft space below 5,000 sq ft with fewer deals Supply 000s sq ft
year average which has decreased slightly 1,000 above 20,000 sq ft which follows recent 1,200
to 510,000 sq ft. Not a pleasing statistic trends. In order to meet demand, landlords
1,150
20%
800 1,000
as the city already lags behind its UK continue to split larger units to meet
797
800
915
15%
contemporaries. As many occupiers seek to occupier demand and achieve a higher
721
845
707
710
600
692
downsize, most enquiries and transactions rent psf. 600
400
are for suites of less than 5,000 sq ft. Out 400
515
472
of town deals account for over 50% of the 200 • The largest transaction was the letting of 200
total. Unit 1 at Fforest Farm at J32 of the M4 to
0 0
17 18 19 20 21
Cytiva totaling 119,000 sq ft at £5 psf. This 17 18 19 20 21
• Notable deals included DWP taking 13,168 10 year average 841,000 sq ft deal, combined with other market activity, 10 year average 957,000 sq ft
sq ft at Ty Bevan in Llanishen, Gen Med Ltd pushed the total take-up for the year to
taking 12,266 sq ft at Fountain House in St 756,000 sq ft, up 27% on 2020 and 58%
Mellons and Euroclad taking circa 15,000 Headline rent £psf on 2019. Headline rent £psf
sq ft at Severnside, also in St Mellons. 25 6
6.1
25
25
25
25
25
6
• Developers strongly outnumber
5.80
5.80
0% 0%
5
5.5
20
• Further release of space at Central and development sites around the city fringes
1.6%
4
Callaghan Square has pushed Grade A 15 and along the M4. Industrial portfolios are
availability beyond 350,000 sq ft. This being refurbished to meet the market’s 3
14.5
14.5
14.5
14.5
14.5
City centre Out of town 10
includes JR Smart’s John Street which will demand for good quality stock. Notably, 2
release 109,000 sq ft in early 2022. 5 Associated British Ports have identified City centre
1
Cardiff as one of its strategic sites for
0 0
• Headline rents in the city are stable at £25 development and will be preparing land for
17 18 19 20 21 17 18 19 20 21
psf and we predict they will remain at this City centre Out of town development over the next 18 months.
level throughout 2022 due to the overall
shortage of Grade A stock. • Headline rents increased to £6.10 psf and
Alder King Market Monitor 2022
Alder King Market Monitor 2022
are predicted to rise further in 2022.
Take-up by sector % Under construction/
refurbishment 26% 11.5%
11% 22% Supply at The Port
of Cardiff
2021 deals over
20,000 sq ft
Finance Healthcare
10% 9% 109,000 SQ
FT
Professional Public Sector
Services
11 12
Cardiff
Cardiff Central Bus Interchange. 72-76 Queen Street, Cardiff. 3 Harbour Drive, Cardiff.
Market Factsheet Market Factsheet
RETAIL & LEISURE INVESTMENT
Oli Stretton
• Another tough year ends with contrasting Zone A headline rent £psf T 0117 317 1121 Volume of investment transactions £ms
fortunes for Wales and Cardiff compared 250
E ostretton@alderking.com 500
to the rest of the UK. In August, the Wales
0% 3%
474.5
200 400
225
225
220
Retail Consortium reported a 14.4%
407.2
200
200
decrease in footfall in Cardiff on two years 150 Significant transactions included: 300
ago, the shallowest decline of any UK
nation. Then Omicron arrived, the Welsh
100 • Unit 1, Forest Farm Industrial Estate, 200
Longwood Drive. Unit 1 Forest Farm
172
Government imposed stricter rules than
166.7
167
50 100
England, and the leisure sector felt the Industrial Estate was bought in September
pain. 0 2021 by London Metric for £11.06m 0
17 18 19 20 21 17 18 19 20 21
reflecting a net initial yield of 5.00%. 10 year average £216.35m
• On a brighter note, St David’s Shopping This circa 118,000 sq ft urban logistics
Centre attracted Phase Eight (2,135 sq ft) warehouse is let to Global Life Sciences
and was joined by its sister brand Hobbs, on a new 10 year lease with RPI rental
Out of town headline rent £psf Prime yields %
(3,024 sq ft) and Rituals making its Welsh 25 uplifts and a passing rent of £595,000 8
per annum. The building is located in an
25
25
25
25
25
debut with a new 875 sq ft boutique. These
0%
20 established Life Sciences location, adjacent
latest openings form part of 68,000 sq ft Industrial 5%
7
of new lettings announced at the Centre 15
to J32 of the M4.
Office 5.75%
in 2021, including ZARA, Breitling, Morphe, Retail High Street 6.50%
6
Mallows Beauty and Sky. The Debenhams
10 • 72-76 Queen Street. Topland Group Retail Out of Town 6.25%
store remains vacant. 5
purchased this prime retail unit on Queen 5
Street from M&G for £2.32m in July 2021,
• Construction of the impressive Interchange 0 reflecting a net initial yield of 6.42%. The 4
17 18 19 20 21 17 18 19 20 21
building continues at Central Square, circa 120,000 sq ft retail unit is let to Marks
forecast to complete at the beginning & Spencer PLC for a further 135 years,
of 2023. It will provide four independent having occupied the building for over
ground floor retail units fronting a 14- 80 years. The passing rent is £1.61m per
Leisure headline rent £psf annum. Investment by sector %
bay bus station with associated public 40
40
40
40
40
40
concourse. Above will be a split-plate
0% 0% 0%
• 3 Harbour Drive. This key office deal saw
multi-storey car park for 249 cars, an
30% 27%
30
independent 120,000 sq ft GIA office block KAMCO purchasing 3 Harbour Drive from
and 318 Build to Rent apartments. Cinema Health & Fitness A3/A4 20 Global Mutual for £25.025m. The circa Offices Industrial
97,000 sq ft Grade A office building is let to
Atradius Ltd.
13
13
13
13
13
• Pipeline developments include a seven 10
30% 13%
11
11
11
11
11
year masterplan for Atlantic Wharf in
0
Cardiff Bay, anchored by a £150m indoor 17 18 19 20 21 Retail Other
arena and 150 bed hotel.
Alder King Market Monitor 2022
Alder King Market Monitor 2022
Total sales by purchaser type %
Institutional / Pension Fund 40%
Property Company 13%
Private Investor 37%
Other 10%
13 14
Exeter
One Tiger Moth Road, SkyPark, Exeter. Exeter Trade Park. Courtesy of Graftongate. CGI of the Stovax Heating Group unit. Courtesy of St. Modwen.
Noel Stevens
Market Factsheet Market Factsheet
T 01392 353093 INDUSTRIAL &
E nstevens@alderking.com LOGISTICS
OFFICES Take-up 000s sq ft • 2021 saw continued strong demand in the Take-up 000s sq ft
200 industrial sector. Rents and capital values 400
199
hit new highs and demand was strong
371
355
• The flight to quality in the office market 150 across the board. 300
167
10.5% 118%
can be seen by the spread of transactions
144
277
273
126
that took place in 2021. The top end of 100 • The completion of new buildings at 200
114
the market saw good levels of demand developments including Exeter Trade Park
170
50 100
as businesses sought to provide the best in Marsh Barton helped increase supply and
space to tempt staff back to the office. also cement rental growth in the market.
0 0
17 18 19 20 21
However as all the units were pre-let, the 17 18 19 20 21
• Winslade House saw just over 32,000 sq ft 10 year average 147,000 sq ft supply didn’t exist long in the market. The 10 year average 370,000 sq ft
transact as the first phase of occupiers Paloma Capital/Graftongate scheme will
start to move in. By offering a variety see Selco as its anchor tenant in a new
of leases, from flexible workspace up to Supply 000s sq ft 36,000 sq ft building and is a high profile Supply 000s sq ft
longer term traditional leases, Burrington 400 example of successful redevelopment. 250
404
251
Estates have created high quality space to
390
3.5% 51%
200
225
suit all budgets. 300 • The construction and pre-sale or pre-letting
of units was one of the key themes for
272
150
167
165
• The remaining Grade A ground floor space 200 the year. There is so little existing stock
100
at 1 Tiger Moth Road, SkyPark was let to available in the market that most of the
179
110
100 162
Troy UK, a fast growing business which take-up has come from new builds. New 50
already occupies the first floor. Rents on builds have been at the mercy of rampant
0 0
the space are now £20 psf +. 17 18 19 20 21
construction cost inflation which has in part 17 18 19 20 21
10 year average 300,000 sq ft driven the rise in rents and capital values. 10 year average 217,000 sq ft
• New build and refurbished space is planned With such low supply and strong demand,
and quoting rents for the best space in the developers have been able to build at
city centre is now £25 psf. Out of town at Headline rent £psf inflated costs and then price that in to the Headline rent £psf
the business parks, rents will need to be at 20 sale or letting to maintain viability. 10
20
20
20
20
similar levels but as it stands no developer
19.5
0% 0%
9.5
8
17.5
17.5
17.5
17.5
17.5
8.90
8.90
8.90
is looking to build speculatively. 15 • Occupiers are willing to pay the extra
8
6.7%
for new build space which is high quality, 6
• The growth in supply widely predicted 10 energy efficient and without defects.
City centre Out of town 4
because of the pandemic has not been This transition from construction to pre-
seen. With leases running for several years, 5 let means the supply of space has not 2
the true impact on occupation will only be increased, although some of the demand
0 0
seen in the next five years as most leases has.
17 18 19 20 21 17 18 19 20 21
have been through an expiry or break. City centre Out of town
• Trade counter quoting rents are now £14
• Headline rents were maintained in 2021 psf + for the best space, sub 5,000 sq ft.
Alder King Market Monitor 2022
Alder King Market Monitor 2022
but incentives increased on a case by case Demand from trade occupiers at the top
basis. Occupiers looking for secondary end of the market has been strong.
space have had more choice and Q4 saw a
raft of out of town lettings which showed • Small unit demand remains extremely
that demand does still exist. good and we have seen developments
completing. The second phase of Mercury
• With the changes in demand, we have Business Park is under construction with
seen an increase in conversations terms being agreed at £175 psf. In 2022
around conversion of city centre space we can expect these capital values to
to student housing and residential. These increase. Small unit rents have also taken a
redevelopments will serve to reduce supply march forward. £10 psf + is now required a
of secondary space and re-balance the minimum for new build.
market.
15 16
Exeter
Costa Coffee, Pynes Hill. Broadwalk House, Southernhay Gardens, Exeter. Exeter Gateway Logistics Park, Exeter.
Market Factsheet Market Factsheet
RETAIL & LEISURE INVESTMENT
Oli Stretton
• Exeter saw a raft of new store openings Zone A headline rent £psf T 0117 317 1121 Volume of investment transactions £ms
in 2021. The largest new retailer was Ted 250
E ostretton@alderking.com 200
Baker, replacing cosmetics brand Mac in
0%
200
177.7
Princesshay. The city centre also saw new 150
210
210
210
210
210
37%
food offerings from The Ivy, Luciano’s 150 Significant transactions included:
and GDK. The Ivy in particular has had a 100
positive impact on the city centre.
100 • Kestrel Way, Sowton Industrial Estate.
81.8
72.4
29.6
50
This single let industrial unit was 50
purchased by London Metric in September
40.6
• BrewDog and The Botanist have opened
at The Guildhall. This shows there is still 0 for £6.1m reflecting a net initial yield of 0
17 18 19 20 21 17 18 19 20 21
demand for city centre space in the food 4.23%. The unit which totals circa 47,000 10 year average £76.82m
and beverage sector and that the best sq ft is single let to Jewson with 17 years
brands see Exeter as a target location. remaining on the lease. Sowton is one of
Exeter’s most desirable industrial estates.
Out of town headline rent £psf Prime yields %
• The shift from pure retail to experiential 40 8
offers continues with the opening of • Broadwalk House, Southernhay Gardens.
38
38
47%
Locked in a Room, an escape room 30 Castleforge purchased this city centre 7
Industrial 4.75%
experience. office building for £13m reflecting a net
Office 6%
initial yield of 5%. The circa 80,000 sq ft
25
25
20 6
Retail High Street 6.5%
office building is multi-let to a variety of
20
• One of the city’s landmark buildings, Retail Out of Town 6.25%
The Royal Clarence Hotel, is set to be 10 tenants. The office is held long leasehold 5
redeveloped as luxury flats as hotel with 188 years remaining. The building
development becomes unviable. Bringing 0 offers modern, flexible office space and is 4
17 18 19 20 21 17 18 19 20 21
more people to live in the city will be a located in the middle of the Castle Quarter
benefit to local businesses. The quality of and close to Exeter’s Quayside.
development is likely to be high so those
new home owners should come with high • Exeter Gateway Logistics Park. Urban
Leisure headline rent £psf Logistics REIT purchased Exeter Gateway Investment by sector %
disposable incomes and add to the buzz 50
that The Ivy and No.5 have created. (DC4) in September for £4.78m reflecting
0% 0% 0%
40 a net initial yield of 5.3%. This is a forward
21% 40%
42
42
42
42
42
• Out of town there were limited closures 30
funding deal of a circa 30,000 sq ft new
during the pandemic. Hobby Craft replaced Cinema Health & Fitness A3/A4
build industrial unit. The company already Offices Industrial
Carpetright at Rydon Lane Retail Park.
20 has a number of units at Exeter Gateway.
17
17
17
17
17
38% 0%
10
12
12
12
12
12
• Demand remains very strong for drive thru
0
restaurants with Costa Coffee opening 17 18 19 20 21 Retail Other
a new branch at Pynes Hill. The market
continues to flourish with rents at just
under £40 psf for the best sites.
Alder King Market Monitor 2022
Alder King Market Monitor 2022
Total sales by purchaser type %
• Demand in the leisure market is
outstripping supply. Operators like Ninja
Warrior and gyms continue to look for
space, much of it quasi-industrial. The
size of gym requirements out of town has Institutional / Pension Fund 30%
increased as demand from gym goers Property Company 35%
continues to increase. Unfortunately Private Investor 35%
demand from traditional users of the space
remains strong and therefore change of
use is not possible.
17 18Gloucester
Javelin House, Gloucester. Festival Trade Park, Cheltenham. Courtesy of Northwood Urban Logistics.
Adrian Rowley
Market Factsheet Market Factsheet
T 01452 627133 INDUSTRIAL &
E arowley@alderking.com LOGISTICS
OFFICES Take-up 000s sq ft • The industrial warehouse sector performed Take-up 000s sq ft
250 extremely well during 2021. The greatest 800
250
800
demand for space throughout the year
200
220
705
• Demand for office space in Gloucester came from the distribution sector although 600
650
78% 45%
continues to improve as the sector reacts 150 Q4 did see an upswing in demand from
550
160
500
to the pandemic. Not only has space been manufacturers. 400
145
140
100
re-occupied but the drive for improved
200
staff wellbeing and a shift to less intensive 50 • Total take-up for the year hit approximately
occupation has added to increased demand. 800,000 sq ft, exceeding 2020 which in
0 0
17 18 19 20 21
itself had been the highest take-up level for 17 18 19 20 21
• Take-up for 2021 totalled approximately 10 year average 157,500 sq ft 15 years. 10 year average 518,000 sq ft
250,000 sq ft, well exceeding previous
years’ take-up. • Delivery of new speculatively-built space
Supply 000s sq ft continues at St. Modwen Park Gloucester Supply 000s sq ft
• Supply of space remains very low in both 200 with the completion of the Phase 2 400
200
out of centre and city centre locations scheme comprising four mid-box units
25% 14%
180
350
350
350
350
and there has been an absence of any 150 ranging from 36,000 sq ft to 55,000 300
150
300
speculative new build development for over sq ft. The 55,000 sq ft building has been
140
140
10 years. These factors look set to continue 100 let to Gardiner Bros and a 54,000 sq ft 200
and so choice of available properties will building has been let to Schlumberger. A
50 100
most likely remain limited. speculative start has also been made on
a building of 60,700 sq ft which is due for
0 0
• These factors have pushed a number 17 18 19 20 21
completion in summer 2022. 17 18 19 20 21
of key occupiers requiring larger space 10 year average 160,000 sq ft 10 year average 372,000 sq ft
to start considering new build bespoke • During 2021, St. Modwen also completed
development as the best option for the construction of the 116,000 sq ft Unit 4
certainty of delivery. Headline rent £psf which has been delivered on pre-let terms Headline rent £psf
25 for Gardiner Bros and a start on site has 8
• The letting of some 88,000 sq ft of office been made to construct a 167,000 sq ft
7.5
20
7
7
7
space to EDF at Gloucester Business Park warehouse building for ProCook, also on
22
21.50
21.50
21.50
6.75
6
20
2% 2% 7%
was 2021’s most significant transaction. 15 pre-let terms.
EDF took Javelin House, the former 4
10
headquarters building for Horizon Energy, • In Cheltenham, Northwood Urban
11.75
11.75
11.75
11.75
12
together with five other buildings on City centre Out of town 5 Logistics are well on track to complete the 2
the Park as it relocates its operation speculative development of Festival Trade
0 0
from Barnwood. The move ensures that Park located in Kingsditch Trading Estate.
17 18 19 20 21 17 18 19 20 21
Gloucester retains its status in the energy City centre Out of town This will provide a total of 91,300 sq ft in
sector and also highlights the key skills 14 units. Practical completion is due in
present in that sector. February and currently approximately two
Alder King Market Monitor 2022
Alder King Market Monitor 2022
thirds of the space is under offer.
Key occupier by sector % Under construction/ Key occupier by sector % Under construction/
• Now in parallel with out of centre demand,
demand for office space in the city centre refurbishment • Peveril Securities has just completed refurbishment
has continued to increase year on year. This
is very good news for the City and bodes 35% 10% the development of the new 125,000
sq ft distribution facility for Amazon at 75% 25%
well for the various city centre regeneration Energy Service Centre Severn, Gloucester. The bespoke Distribution Manufacturing
projects that are ongoing. development includes a total site area of
• The market conditions have led to an 33,000 SQ
FT
some 14 acres and a 270,000 sq ft decked
van park. 425,000 SQ
FT
increase in headline rents for out of centre
space, which now sits at £22.00 psf and an
increase to £12.00 psf for city centre space.
19 20Gloucester
CGI of the University of Gloucestershire’s new campus. Costa Coffee Drive Thru, Triangle Park, Metz Way. Centre Seven, Barnwood.
Market Factsheet Market Factsheet
RETAIL & LEISURE INVESTMENT
Oli Stretton
• The most significant event for the city Zone A headline rent £psf T 0117 317 1121 Volume of investment transactions £ms
centre during 2021 was the University of 125
E ostretton@alderking.com 125
Gloucestershire’s acquisition of the former
123.8
0% 0%
100 100
Debenhams department store in Kings
100
100
100
100
100
100
193%
Square. The building extends to 215,000 Significant transactions included:
86.4
75 75
80
80
80
80
sq ft and has been a landmark building in
68.33
62.7
the centre of Gloucester since the original
Eastgate St Kings Walk 50 • Costa Coffee Drive Thru, Triangle Park, 50
part was constructed in the late 1930s. 25
Metz Way. A private investor purchased 25
29.5
The University has acquired the building this 1,851 sq ft Costa Coffee drive thru for
for conversion to an educational facility
0 £1.3m reflecting a net initial yield of 4.7%. 0
17 18 19 20 21 17 18 19 20 21
specializing in providing health and care The property is let to Costa Limited for 10 year average £62.01m
courses, with works due to start early a further 10 years with a rent passing of
in 2022 for a completion for the start of £64,785 per annum.
the September 2023 academic year. This Out of town headline rent £psf Prime yields %
is a huge boost for Gloucester and the 20 • Madleaze Trading Estate. Picton Property 8
potential benefits to the central area and Income purchased this circa 300,000
12.5%
the city generally could be significant. 15 sq ft multi-let industrial estate for £13.1m 7
16
16
16
16
Industrial 4.75%
reflecting a net initial yield of 5.4%. The
14
Office 5.75%
• Gloucester City Council and development 10 estate has 18 units with a rental income of 6
Retail High Street 8%
partners REEF are pressing ahead with the circa £750,000 pa with two vacant units. Retail Out of Town 7%
Kings Quarter re-development scheme. 5 The quoting price was £12m and attracted 5
Following on from the re-modelling of a lot of investor interest, illustrating the
Kings Square, REEF is promoting The 0 demand for the industrial sector. 4
17 18 19 20 21 17 18 19 20 21
Forum which is set to be the first major
phase of the scheme and is to be located • Centre Seven, Barnwood. Uttlesford
on the gateway approach from the newly District Council purchased this circa
developed bus station. The Forum is 123,000 sq ft single let warehouse for
Leisure headline rent £psf £42m in March, reflecting a net initial yield Investment by sector %
proposed to provide office, co-working, 40
leisure, residential, restaurant and café of 4.1%. The unit is pre-let to Amazon for
0% 0% 0%
15 years at £15 per sq ft. This was an off
uses linking to a multi- story car park.
9% 71%
30
32
32
32
32
32
market deal.
• The next phase of Bakers Quay, Gloucester Cinema Health & Fitness A3/A4 20 Offices Industrial
Docks being the conversion of Downings
10
10% 0%
Warehouse has been further delayed
12
12
12
12
12
9
9
9
9
9
through planning. The scheme is a key
0
element in creating the connection 17 18 19 20 21 Retail Other
between Bakers Quay and Gloucester
Quays. A start on site in the autumn is
hoped for which would lead to delivery in
Alder King Market Monitor 2022
Alder King Market Monitor 2022
2024.
Total sales by purchaser type %
• Elsewhere, Robert Hitchins has made
a start on site with its major factory
outlet and garden centre scheme located
adjacent to Junction 9 of the M5 at Institutional / Pension Fund 39%
Tewkesbury. Property Company 31%
Private Investor 30%
21 22Bath
CGI of Bath Quays South. Unit C88, St. Modwen Park Chippenham. Midland Bridge House, Bath.
Market Factsheet Market Factsheet
OFFICES INDUSTRIAL & LOGISTICS
Tom Dugay Andrew Ridler
T 0117 317 1094 Take-up 000s sq ft 125 T 0117 317 1071 Take-up 000s sq ft 20
E tdugay@alderking.com 100
E aridler@alderking.com
111
15
0%
15
15
90
90
90
88
75
2.3%
• Whilst the Bath office market saw an • Demand for good quality industrial space 10
increasing level of supply, this didn’t have remains strong with a number of active
10
50
a negative impact on activity levels, with requirements, particularly for freehold
7.5
7.5
5
25
take-up in line with recent years and space. However options within the city
headline rents increasing. 0 continue to be almost non-existent. 0
17 18 19 20 21 17 18 19 20 21
10 year average 79,000 sq ft 10 year average 20,000 sq ft
• Take-up in 2021 reached circa 90,000 sq ft, • Supply is limited to secondhand stock
which is very similar to 2020. The majority with no speculative industrial/distribution
of activity was sub 5,000 sq ft, with lettings development and none expected for the
Supply 000s sq ft 200 Supply 000s sq ft 10
completing in Westpoint, Northumberland foreseeable future.
10
8
Building and Queen Square.
0%
150
160
• Occupiers struggling to find 6
70%
• Top headline rents in Bath city centre 100 accommodation of a modern specification
5
5
5
5
increased to £32.50 psf and we expect are being forced to consider locations 4
94
82
them to continue to rise during 2022, 50 75 outside Bath such as east Bristol,
70
2
with lettings at the recently completed particularly along the Ring Road Corridor
speculative development at No.1 Bath 0 from the A4 to the M32, and Chippenham 0
17 18 19 20 21 17 18 19 20 21
Quays. 10 year average 89,000 sq ft where St. Modwen has recently pre-let 10 year average 27,000 sq ft
88,000 sq ft to Furniturebox. The balance
• The supply of immediately available, of the scheme can accommodate buildings
modern, open plan accommodation within Headline rent £psf 40 up to 800,000 sq ft. Headline rent £psf 20
the city has previously restricted the Bath
market in recent years. However, as a 30 • Due to the lack of supply, take-up mirrored 15
32.5
31
31
31
31
result of new developments, refurbishment the 2020 figure and was made up of a
4.8% 18%
13
projects and a change in working practices, 20 number of smaller transactions involving 10
11
10
there has been a rise in supply over the smaller format secondary space.
9
8.75
last 12 months. Total supply currently 10 5
stands at circa 160,000 sq ft, the highest City centre • The imbalance in demand and supply
it has been in recent years. This figure 0 means headline rentals for new space of up 0
17 18 19 20 21 17 18 19 20 21
includes 45,000 sq ft at the South Quays to 5,000 sq ft are now close to £13 psf per
development, where a number of lettings annum.
are already in solicitors’ hands.
INVESTMENT
RETAIL & LEISURE Zone A headline rent
£psf
Out of town headline rent
£psf
Leisure headline rent
£psf
Volume of investment transactions
£ms
Prime yields
%
Oli Stretton
Alder King Market Monitor 2022
Alder King Market Monitor 2022
• Bath has struggled with the reduced T 0117 317 1121 E ostretton@alderking.com
number of tourists visiting the city. 200 40 40
205
205
200 8
However there is strong demand from F&B Significant transactions included:
185
185
185
35
35
35
35
35
150 30 30
189
operators. The Square Grill Restaurant and 150 7
Piano Bar is set to open soon on Abbey • Midland Bridge House. A private family Industrial 4.25%
25
25
25
25
25
100 20 20
Churchyard. Coppa Club has submitted a trust purchased the freehold of this office 100 Office 5% 6
107.3
Retail High Street 5.5%
planning application to occupy the former investment for £5.925m reflecting a net
15
15
15
15
15
15
96
14
14
50 10 10 Retail Out of Town 6.25%
11
11
35.4
GAP store on Old Bond Street. initial yield of 5.7%. The circa 18,500 sq ft 50 5
22.9
0 0 0 office is located in the historic centre of
17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 0 4
Bath and is single let to Royds Withy King. 17 18 19 19 21 17 18 19 20 21
Cinema Health & fitness A3/A4
There is a substantial car park offering
longer term redevelopment opportunities.
23 24Bridgwater
Angel Crescent, Bridgwater. Monmouth Scientific building under construction.
Andrew Maynard
Market Factsheet Market Factsheet
T 01823 444879 INDUSTRIAL &
E amaynard@alderking.com LOGISTICS
OFFICES Take-up 000s sq ft 100 • The availability (occupation from Q2 Take-up 000s sq ft 200
2022) of the Argos Distribution Centre
190
75 at Huntsworth Business Park has added 150
165
• The take-up figures for 2021 include over 350,000 sq ft to the supply figures at
146% 52%
the occupation of Phase 2 and Phase the beginning of 2022 but that aside, the
120
50 100
105
105
50
3 buildings at the Somerset Innovation underlying supply did rise by around 8%
40
Centre on Woodlands Business Park 25 during the year. 50
37
25
and are therefore significantly above
15
the underlying long term trend, which is 0 • Take-up was relatively good in 2021 0
17 18 19 20 21 17 18 19 20 21
broadly similar to 2020. 8 year average 48,000 sq ft with progress on a number of new build 8 year average 198,000 sq ft
projects, notably at both Peninsula 23
• Demand rose within the town centre and and Bridgwater Gateway, with more
the headline rent also improved slightly Supply 000s sq ft 100 construction starts likely into 2022 at both Supply 000s sq ft 800
to £9 psf, an increase of 12.5% on the schemes.
same time last year. Out of town rents are 600
57%
75
75
590
broadly similar. • Rental levels have remained relatively
145%
70
50 stable over the past few years. 400
60
60
• The level of supply has dropped
25 200
substantially, partly due to the occupation • Freehold demand for new build is good
275
240
240
30
225
of the Phase 2 and 3 buildings at Somerset within the town with a number of local
0 0
Innovation Centre, which has stood vacant 17 18 19 20 21
companies looking to expand and improve 17 18 19 20 21
for some time. 8 year average 65,000 sq ft their property assets. 8 year average 320,000 sq ft
• There is very little out of town available
stock at present, with limited availability Headline rent £psf 20 Headline rent £psf 10
at the very popular business centre at
8
8.75
8.75
8.5
8.5
0%
The Exchange on Express Park but good 15
8
15
15
14.5
14.5
14.5
availability of flexible office spaces at 6
12.5% 0%
10
TCN’s NEST@Mallard Court, both of which
4
9
provide a range of offices and workspaces.
8
8
8
8
5
2
Town centre Out of town
0 0
17 18 19 20 21 17 18 19 20 21
Town centre Out of town
INVESTMENT
RETAIL & LEISURE Zone A headline rent
£psf
Out of town headline rent
£psf
Leisure headline rent
£psf
Volume of investment transactions
£ms
Prime yields
%
Oli Stretton
Alder King Market Monitor 2022
Alder King Market Monitor 2022
• Sedgemoor District Council’s development T 0117 317 1121 E ostretton@alderking.com
Northgate Yard will be complete in October 80 20 20
40 8
2022. The scheme’s seven screen cinema, Significant transactions included:
19
19
18
17
60 15 15
eight lane bowling alley, sports bar and
15.5
15
15
15
15
15
30 7
60
five restaurants to the northern edge of • Polden Distribution Centre, Bristol Road. Industrial 5%
12
12
12
40 10 10
11.5
11.5
the town centre will deliver a first class LMF Holdings Ltd purchased the freehold
25.6
Office 7.25%
42
42
42
10
10
20 6
21.9
35
Retail High Street 8%
entertainment and dining hub for the of this single let industrial asset from
7.5
7
7
20 5 5
11.6
Retail Out of Town 7%
town and further the regeneration of the Brookshire Capital for £4.7m, reflecting 10 5
3.7
Northgate area. 0 0 0 a NIY of 5.01%. The property totals circa
0
17 18 19 20 21 17 18 19 20 21 17 18 19 20 21 0 4
53,000 sq ft and is let to Butcombe Brewery 17 18 19 20 21 17 18 19 20 21
Cinema Health & fitness A3/A4
Limited for 20 years from August 2017.
25 26Plymouth
Bluewater Industrial Estate, Plymouth. West Point & Centre Court, Exeter Street, Plymouth.
Noel Stevens
Market Factsheet Market Factsheet
T 01392 353093 INDUSTRIAL &
E nstevens@alderking.com LOGISTICS
OFFICES Take-up 000s sq ft 200 • Industrial take-up continues to rise in Take-up 000s sq ft 600
Plymouth market with 2021 posting the
180
500
550
150 highest figures recorded, the previous
167
400
• There were very positive signs in the high being 500,000 sq ft in 2012. The
418
414% 32%
office market in 2021, with transaction first half of the year saw the majority of 300
356
100
124
310
levels at a record high. The 2018 high of transactions. As we would expect, the 200
167,000 sq ft was the previous record,
207
50 majority of transactions were sub
100
beating the 145,000 sq ft transacted in 5,000 sq ft.
35
30
2012. With 71,200 sq ft transacted in the 0 0
17 18 19 20 21 17 18 19 20 21
first six months of the year, there was a 10 year average 114,000 sq ft • The supply of industrial property is at 10 year average 329,000 sq ft
strong finish. The high demand is in part a its lowest level since 2018 and a fraction
build-up from 2020 and points to some real of what it was 10 years ago. With strong
positivity in business sentiment. Supply 000s sq ft 400 demand and reduced supply across the Supply 000s sq ft 400
country, we are seeing developers react
391
• With such a positive demand picture, it and try to deliver space. The City Council 300
6% 43%
300
is not surprising that the supply of space is helping to drive forward deliver at
280
250
has dropped to its lowest ever level. The 200 locations like Oceansgate and Phase 3 200
235
236
224
222
197
194
office market has been slow moving for of the Hearder Court development in
175
100 100
some time so new development has been Langage.
restricted.
0 0
• With the changes in consumer shopping 17 18 19 20 21
10 year average 284,000 sq ft 17 18 19 19 21
10 year average 379,000 sq ft
• The increased demand and reduced habits, demand is set to continue in 2022
supply should lead to improved demand as the move from the high street to the
for existing stock. Downsizing is likely to warehouse continues.
continue but demand is improving for Headline rent £psf 20 Headline rent £psf 10
better quality space as occupiers seek to 8
17
17
17
0% 0%
15
0%
attract staff back in to the office.
16.4
16.4
8
8
8
8
8
15
15
15
15
15
6
10
4
City centre Out of town
5
2
0 0
17 18 19 20 21 17 18 19 20 21
City centre Out of town
INVESTMENT
RETAIL & LEISURE Zone A headline rent
£psf
Out of town headline rent
£psf
Leisure headline rent
£psf
Volume of investment transactions
£ms
Prime yields
%
Oli Stretton
Alder King Market Monitor 2022
Alder King Market Monitor 2022
• The former Debenhams building is now T 0117 317 1121 E ostretton@alderking.com
under offer with the identity of the buyer 200 25 40
100 8
25
25
25
25
25
unknown. Given the changes in shopping 20 Significant transactions included:
35
35
35
35
35
165
165
165
165
165
150 30
habits, the building is likely to re-open with 75 7
82.6
an alternate use in place. B&M opened a 15
100 20
• Bluewater Industrial Estate, Bell Close. Industrial 5%
new store in the former BHS unit. Drake 10 Boundary Real Estate purchased this multi- 50 Office 7% 6
54.3
Retail High Street 7.75%
51.2
Circus also found new occupiers and, as 50 10 let secondary industrial estate in April for
13
13
13
13
13
5 Retail Out of Town 7%
with other markets, new food and beverage
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£6.8m reflecting a net initial yield of 8.40%. 25 5
9.5
11.1
brands continued to expand. Brew Dog 0 0 0 The property is let to seven different
19 20 21 17 18 19 20 21 17 18 19 20 21 0 4
opened at The Barcode as part of its 17 18
tenants across 12 different units comprising 17 18 19 20 21 17 18 19 20 21
Cinema Health & fitness A3/A4
national expansion. 145,824 sq ft, plus some external storage
and a solar farm.
27 28You can also read
