Marshall Land Systems’ planned relocation from Cambridge to Wales provided a major boost to the industrial and logistics market in the third quarter of 2026, according to new analysis from Knight Frank.
The latest LOGIC research from the independent commercial property consultancy found there was 304,000 sq. ft. of take-up in the sector for deals of more than 50,000 sq. ft. While that was down 30% on the 432,000 sq. ft. during the same period last year, it was an 11% increase on the previous three months.
It was announced in September that Canadian-owned defence firm Marshall Land Systems would occupy the former Vision Modular Systems site in Merthyr in one of the most significant industrial lettings of recent years. Knight Frank acted for the landlord on the deal.
Demand for industrial space remains resilient, with more than 700,000 sq. ft. currently under offer, which should mean a positive final quarter of the year for take-up, while putting further pressure on supply.
Availability now sits at more than five million sq. ft., but this is impacted by the return to the market of the 900,000 sq. ft. former Wilko facility in Magor. Of the total, only 355,000 sq. ft. is Grade A and under construction at Indurent Park in Newport, where there is already strong interest in three of the five units.
Total vacancy rate now sits at 10.4% – up on 9.2% at the start of the year. However, the Grade A vacancy rate compressed to just 0.5% during the third quarter, highlighting the shortage of high-quality stock available in Wales.
A number of new schemes are expected to provide additional supply of quality industrial and logistics space. Two full refurbishments have completed offering around 50,000 sq. ft. in Llantrisant and 60,000 sq. ft. in Llantarnam Park, Cwmbran, while Deeside Regeneration has acquired land at Brocastle to develop a 58,000 sq. ft. manufacturing and production facility.
Neil Francis, head of industrial and logistics at Knight Frank Cardiff, said: “It has been another resilient quarter for industrial and logistics take-up in Wales, with the Marshall Land Systems deal providing a significant boost to the market. Although the figures are down on this time last year, there is still a good level of demand for quality space in the right areas.
“There is more than 700,000 sq. ft. of space under offer across the market, which reflects the fact that with the current economic backdrop decisions are taking longer. But, once these deals complete, they will support take‑up towards the end of the year and into 2027, helping to reduce the volume of second‑hand stock currently available.
“Freehold demand for industrial and logistics buildings over 50,000 sq. ft. remains strong, even as stock levels stay tight. The number of enquiries we received for the 126,000 sq. ft. of space available in Abercarn clearly demonstrates that. Within days of launching we carried out five viewings and already have three occupiers preparing to submit offers.
“It is also positive that we are seeing momentum on the Grade A supply side. Deeside Regeneration’s acquisition of land at Brocastle is a welcome step forward, as are the completion of the two refurbishments in Llantrisant and Llantarnam. Both buildings have benefited from substantial investment, stripped back and upgraded to a high standard, giving the market more best‑in‑class options.”
