19 Jun 19 by Joanne High
The industrial market continues to perform well in Plymouth and demand has been extremely strong over the past 12 months with a limited supply to fill occupier requirements. Units sub 2,000 sq ft are seeing the most demand, but there is still an increased demand for larger units of 5,000 sq ft plus. Units of 5,000 sq ft plus are generally not built on a speculative basis because of the risk involved for the developer of having the unit vacant if a tenant is not forthcoming. This has therefore exasperated the issue of units in this size range being available. When an occupier has a requirement they generally don’t have 1-2 years time available to them, which is the time period you are looking at for a design and build scenario, therefore they generally tend to take second hand stock, because that is more readily available, although there isn’t much of that in the market at the moment.
Uses vary from traditional industrial uses, to the more non-traditional such as gyms and training facilities. Retail businesses are also taking industrial units due to the rents being better value for money compared to office or retail premises, and the continuing shift to online.
The increased demand is pushing up rents and prices and with little to no industrial development due to be completed this year the supply pipeline is every constricting. We have recently completed the sale of one of the new units at Seaton Park at Derriford along with lettings at Wallsend Industrial Estate at Cattedown, Gwel Avon Business Park at Saltash, Moorview Court at Estover and Bell Park in Plympton with rents ranging from £6-7.50 per sq ft dependent on size, quality and location.