The decision to build the speculative Apollo Park scheme in Bristol, where only four units now remain, has been hailed by a leading industrial and logistics expert.
Tim Davies, the Bristol-based head of South West Industrial & Logistics for real estate advisor Colliers International, said the success of Apollo Park underlined the vision of developer Chancerygate in deciding to build the 6.5 acre industrial estate in Yate.
“Latest data from Colliers International shows the UK has just over a year’s worth of industrial space left – just 1.3 years nationally, and even less in the South West where industrial availability has declined by 61 per cent since 2009 and just 1.2 years of supply remain,” he said.
“In this context, there is a new significance to Chancerygate’s visionary decision to develop Apollo Park on a speculative basis, as this modern distribution facility brings much-needed industrial space to the Bristol area at a time when there is a regional and national shortage.
“While most other developers are seeking pre-let commitment, Chancerygate’s bold move has already been rewarded with the sale of all of Phase Two, totalling 60,000 sq ft, and the disposal of most of Phase One which totals 43,000 sq ft.”
A total of 68 per cent of Apollo Park was pre-let or pre-sold on behalf of Chancerygate by the Industrial & Logistics team in the Bristol office of Colliers International, jointly with JLL.
Unit 5 at Apollo Park was recently let to Colonna Coffee, and Units 6-7 and Units 8-9 are under offer. The entire 60,000 sq ft second phase was sold off plan to timber import and distribution company James Latham; Unit 10 was sold to Jackson Lift Group; and the two largest units in Phase One, Units 11 and 12, have been let to elite performance cycle company Saddleback.
Mr Davies said: “Only Units 1-4 now remain at Apollo Park. We can accommodate requirements from 3,500 to 16,000 sq ft, and we are confident they will attract interest from a variety of potential end users.
“They are available on a freehold or leasehold basis, and combine a high specification and an excellent strategic location on the established Great Western Industrial Estate in Yate. This has good access to Junction 18/19 of the M4 motorway, and Junction 14/15 of the M5 motorway, as well as access into central Bristol via the A432/ M32.”
The Colliers International Summer 2017 UK Industrial & Logistics Market Barometer shows that despite the reduction in availability and supply, just 17 million sq ft of industrial space is under construction.
There has been a 60 per cent decline in speculative completions since 2007, according to the data, with speculative industrial schemes now accounting for just 28 per cent of all UK developments under construction. Colliers predicts that completions will fall by 60 per cent in 2017, to 3.5 million sq ft.
The data also shows that industrial sector continues to attract strong investor interest, with investor volumes of £3.4 billion in the first half of 2017, exceeding the first half of 2016 by 13 per cent.