Industrial land values in prime locations in the South West are set to rise during the second half of 2018, according to real estate services company Colliers International.
The recently-released Industrial & Logistics H2 2018 predictions from Colliers anticipates land values in Bristol rising from £500,000 to £550,000 per acre for sites up to five acres, and from £400,000 to £425,000 per acre for sites over 10 acres.
Land values for sites over 10 acres are also expected to increase in Swindon, Exeter and Plymouth, reaching £350,000, £400,000 and £250,000 per acre respectively, off values of £325,000, £350,000 and £200,000 respectively.
Swindon is also tipped to see land values for small units increase from £375,000 to £400,000 per acre by the end of 2018.
Tom Watkins, associate director in the South West Industrial & Logistics team at Colliers International, said: “Land values in the South West have moved on considerably the last 12 months.
“A major driver for increasing industrial land values had been lack of stock, coupled with continuing demand from e-commerce for strategically-located premises ranging from distribution units of over 100,000 sq ft to smaller units in cities and towns for last-mile.
“Some supply pipeline for well-located prime industrial units will be replenished by new speculative schemes, with Unit 1 Symmetry Park in Swindon now practically completed and further speculative units scheduled for Vertex Park at Emersons Green in Bristol, and at Bridgwater Gateway in Somerset."
Mr Watkins added that while industrial land values in the South West were predicted to rise, rental figures were likely to remain largely unchanged for the second half of the year.
"Rental growth has started to plateau slightly, although this does come within a context of industrial rents in the South West presently at an all-time high, and soaring rents last year in many areas of the South West – notably with open market rents in the South West for units over 100,000 sq ft in Bristol and Exeter, rising by 11% and 24% respectively, and secondary units achieving increases of 18% and 25% respectively," he said.
The latest UK industrial rents map from Colliers International can be seen here