COMMERCIAL PROPERTY
Demand for commercial property in Gloucester hits 15-year high
The market for industrial property in Gloucester is defying all expectations, with demand hitting its highest levels for 15 years in 2019. In its latest market report, property consultant Alder King has revealed that demand for office space and industrial units in the city was 20 per cent over the five-year average. More than 700,000 square feet of commercial property was taken up in 2019, the highest since 2004, as companies took advantage of space hitting the market. The largest completion was for the 183,000 sq ft manufacturing building by Arlington for GE Aviation at Gloucester Business Park. Strong demand for sites at Gateway 12 and St Modwen Park ensured Gloucester’s was one of the most active markets in the region. And it’s not just in Gloucester where the commercial property market is seeing huge demand. The next phase of Severn Distribution Park at Sharpness will see 467,000 sq ft being added to the mix across three new buildings. New developments at Furlong Park in Bishop’s Cleeve and on Kingsditch Trading Estate in Cheltenham are underway too. The latter will see 14 new units at Festival Trade Park, with nearly 100,000 sq ft of space hitting the market. The take-up in office accommodation was down on the record numbers set in Gloucester during 2018.
Last year, 160,000 sq ft was taken up, compared to 220,000 in the previous 12 months, with much of it out-of-centre space. Unlike the industrial market, there is no speculative new build underway, meaning the current supply of around 180,000 sq ft is for refurbished and secondary space. This is likely to fuel further design and build activity for larger, more bespoke requirements, similar to Ecclesiastical’s new space on Gloucester Business Park. The city’s investment market performed extremely well in 2019, up 81 per cent on 2018 with £123.8 million of investment. This was the city’s strongest ever performance and was boosted by the Dunmore Group’s purchase of Bamfurlong Industrial Park for £7.45 million and the £1.9 million sale of Goodridge Trading Estate. Significant transactions included The Dunmoore Group’s acquisition of Bamfurlong Industrial Park for £7.45 million and the sale of Goodridge Trading Estate for £1.9 million, a transaction handled by Alder King. Adrian Rowley of Alder King said: “Gloucestershire continues to exert a strong pull with occupiers, investors and developers. “Demand from the region’s manufacturing sector in particular is driving new development in the county. “However, speculative development takes time to deliver, and so in the short to medium term, the market remains constrained by a lack of supply. Forward planning is the watchword for 2020” l
Commercial property specialists Commercial Property Specialists Find out more at www.daviesandpartners.com
86 | February 2020 | www. punchline-gloucester .com
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