Speculative development of industrial and office premises across the West of England is the surest sign yet of returning economic confidence, according to Tim Davies, head of Colliers International’s Bristol office.
“Between 2006-2008 Bristol industrial markets saw 1.7 million sq ft of speculative completions. The comparable figure for 2009-2013 is just 150,000 sq ft. This means Bristol now has less than seven month’s supply of new or refurbished big shed accommodation.
“The Bristol industrial multi-let market is also seeing supply diminish. Availability of units under 10,000 sq ft has fallen by 19 per cent since 2010.”
Davies argued that “Developers brave and sufficiently well-funded enough to speculate will be best placed to take advantage of this new found confidence.”
“It’s clear the market is moving at a pace we haven’t seen since 2007. We have been trying to balance supply and demand without the benefit of any speculative development for years and it’s very encouraging to see businesses are once again prepared to take a punt on a new office building or industrial unit.”