West of England industrial market undergoing ‘significant change’ as incentives reduce, says Bristol industrial expert

The industrial market in Bristol and the surrounding areas is undergoing a ‘significant change’ with landlord incentives reducing in recent months, according to a Bristol industrial property expert.

Russell Crofts, industrial partner at Knight Frank in Bristol, believes that although economic pressures remain acute, industrial landlords are now being less generous with their enticements to potential new tenants.

“While it is much too early to call this the bottom of the downturn, the market has certainly strengthened within recent months.  For the past couple of years twelve-month rent-free offers have been the norm on a five-year industrial lease in the region.  But since April this has reduced by around 20-25 per cent.

“The change in attitude is a result of the reducing supply.  People are not necessarily choosing to move in greater numbers but sufficient numbers of businesses have to change their premises and this is giving confidence to landlords.”