Bristol’s industrial property market is starting to strengthen at last, with a reduction in the incentives offered to new tenants a clear sign of the improvement, according to one city-based expert.
Russell Crofts, long-serving industrial partner at agents Knight Frank’s Bristol office, (pictured below), says that although economic pressures remain acute, industrial landlords are now being less generous with their enticements to potential new tenants.
“While it is much too early to call this the bottom of the downturn, the market has certainly strengthened within recent months,” he said. “For the past couple of years 12-month, rent-free offers have been the norm on a five-year industrial lease. But since April this has reduced by around 20-25%.
“The change in attitude is a result of the reducing supply. People are not necessarily choosing to move in greater numbers but sufficient numbers of businesses have to change their premises and this is giving confidence to landlords.”
Mr Crofts’ comments come on the back of a raft of recent large industrial property deals, particularly in the Avonmouth and Severnside areas. Small deals have also been completed on Bristol’s more established industrial estates.
