Lack of stock has led to rising rents at Beeches Industrial Estate in Yate, on the outskirts of Bristol.
Prices on the estate have been typically £6.00 per sq ft, but a recent letting has seen a rent of £6.50 per sq ft achieved.
The deal involved refurbished Unit 29, totalling 7,126 sq ft. It was let to Durbin Metals Limited, which is part of Amari Metals. The company was previously located at industrial premises in Yate, and has relocated to Beeches Industrial Estate.
“This has set a new rental tone for the estate for this size of unit, and while the refurbishment will have enhanced its value the price achieved is more of a reflection of the market,” said Tom Watkins
, of the Industrial and Logistics
team at the Bristol office of Colliers International, which negotiated the £6.50 per sq ft rental on a five year term. Colliers acts jointly with JLL on this estate.
“The way in which rents here have risen by £0.50 per sq ft in a year shows how lack of warehouses in the Bristol area is pushing up rental levels. Values in secondary units have tended to remain static, but we are finding that demand for these warehouses is rising because of a shortage of stock, and this is having an effect upon prices.”
Beeches Industrial Estate comprises approximately 30 units and is located on the outskirts of Yate, providing good access to the M4 and M5 motorways.
There are now only a handful of voids remaining on the estate. These are: Unit 11-14 (28,395 sq ft), Unit 25 (7,090 sq ft), and Unit 58 (2,110 sq ft).