An acute lack of supply in the industrial property market in the Greater Bristol area forced up rents by 8.3% in the first half of this year, according to new research.
While some speculative schemes are now being built, demand is still outstripping supply as occupiers’ needs change.
Research by commercial property consultancy Knight Frank shows two main factors contributing to the acute lack of available industrial properties. 
Knight Frank Bristol partner Russell Crofts, pictured, said: “The industrial property sector is undergoing a structural change because of the internet revolution, with enormous demand for modern premises well located to deliver online orders quickly and efficiently.
“Coupled with this has been the ongoing lack of new industrial construction. Some speculative development in the Bristol areas is at last underway and this will provide space for occupiers to move, with secondary growth set to follow. However, little of it has reached the market yet.”
Two units at Access 18, Avonmouth have been completed by St Modwen providing 34,000 sq ft and 36,000 sq ft, while St Francis and Marcol are on track to deliver 360,000 sq ft of speculative B8 units this year at Horizon 38 at Filton.
At the other end of the scale Rockburn is due to complete three units in Avonmouth of 10,000-12,500 sq ft.
The 8.3% rent increase in Bristol was part of a consistent trend which dated back to the start of the economic recovery in 2015, Russell Crofts said.
Prime headline rents per sq ft for industrial premises over 50,000 sq ft in the South West during the first half of 2017 were £7 in Greater Bristol.
“Supply is now approaching critical levels,” he added. “While those landlords investing in refurbishment are being well rewarded, there remains scope for more speculatively-built, traditional units in many locations.”
