The south west industrial market is well placed for 2021, after resilient demand amid difficult and uncertain conditions last year.
Miller Commercial’s commercial agency team says it has experienced an “exceptionally busy” January with the primary focus having been on the industrial sector.
With active requirements for both large and small units focussed along the A30 corridor, commercial agency surveyor, Thomas Hewitt, says the company is working hard to fulfil the pent up demand of the past 12 months with limited stock available.
He said: “The continued lack of supply of good quality, modern industrial space has driven rents on and we are seeing this reflected in increased freehold prices too.
“Requirement levels are still strong which bodes well for the coming year despite the restrictions. Although the bulk of activity is at the sub 3,000 sq ft end of the market, we have seen a significant increase in requirements above 10,000 sq ft from both national logistic companies and local companies who have seen exponential growth during 2020 as demand for online shopping jumped, reacting to lockdowns and limited access to high street shop.”
Miller Commercial reports that Cornwall, in particular, has a relative shortage of “good quality, modern, fit for purpose” industrial units. It says at the A30 Business Park, Indian Queens, the majority of lettings were concluded prior to the completion of the units. It is also seeing an increase in demand for older stock in locations away from the A30 particularly in Falmouth, St Austell and Newquay.