For example, Asda will have a different format than Co-op or Waitrose.” Colliers head of forecasting Walter Boettcher said: “The trends Tim mentions in logistics is also increasingly obvious in the manufacturing sector where shortages of high quality expansion space, especially for suppliers, is leading large corporates to begin pooling resources.We continue to see strong growth and low inflation.He said: “Businesses in our region will be a vital part of the supply chain opportunities on offer for this £16 billion project, with the possibility that it could create up to 25,000 jobs.With a project of this magnitude and its long-term timescale many construction organisations are already on board and benefiting but the impact of this will be felt far and wide beyond the construction industry.” The commercial property market is one of those areas set to feel the uplift as the size of the investment brings new companies into the area.The rise of internet retail will only drive this further, as businesses compete to deliver next day or same day to meet customer demand.Tim Davies, head of Colliers International’s Bristol office, said most activity in the region’s industrial sector has been design and build initiatives over the last few years.These specific operational requirements can be catered for in ‘build-to-suit’ developments whereby the occupier can effectively design the exact building for the way they work.
The latest Bristol take-up figures for industrial property suggest a strong first half of the year, with rental growth also predicted for the next six months.
In short to medium term, the thing that holds the market back could be supply.
Chris Grazier of Hartnell Taylor Cook LLP, joint letting agent with CBRE on the TSB deal, said: “Keypoint is a prominent office building overlooking the M4/M5 interchange and its letting reflects the significant presence TSB has in the Bristol community.
Demand has increased over the past three years with around 100,000 square feet of known requirements active in the market.” Another area driving the West market forward is logistics and distribution.
Road links to the South West and West Midlands and beyond via the M5 and London or South Wales on the M4 make the region a hot spot for the sector.