Retailers continue to drive growth in the South West and across the UK in the industrial and distribution market, as the sector looks for new warehouse space to cope with the flood of consumer goods from the Far East, according to Lambert Smith Hampton’s latest National Industrial and Distribution Report 2008 report.
Competition within the sector and pressure from consumers to improve sustainability performance is also driving innovation as efforts are made to secure supply chain efficiencies.
Demand for warehousing in Bristol remains strong with the regional distribution market active, while inner Bristol has 49 acres allocated for warehouse use until 2028, the report says.
Out of town, however, there is an estimated 1.8m sq ft of development in the pipeline for the next year at Avonmouth and Severnside, where there is good access to the M4/M5 and substantial tracts of land available.
Tom Gibbons of Lambert Smith Hampton said: “Proximity to the motorway remains key but the industry is increasingly on the look out for sites with good access to the rail network and port connectivity.
“This trend is set to continue as occupiers seek to avoid congestion on the road network, escalating fuel costs and to reduce the carbon footprint of their supply chain.
“Environmental standards for buildings are also on the up, partially in response to new legislation, but also as demand for ‘green sheds’ intensifies.”