Alder King's first Market Monitor Update reveals an encouraging level of activity3rd July 2012

Commercial property consultants Alder King has launched its first Market Monitor Update, a mid-year review of the commercial property market across the South West of England and South Wales. The report reveals an encouraging level of activity, particularly in the offices sector, in spite of the challenging economic conditions.

At the midway point of the year, office take-up has improved in most of the key centres including Swindon, Bristol, Bath, Gloucester, Taunton and Plymouth. In Bristol, the number of larger active enquiries in the 20,000 sq ft (1,858 sq m) size has increased significantly, which should result in an improved level of take-up later this year and into 2013.

The most notable transactions in Bristol so far this year include the acquisition of 40,760 sq ft (3,787 sq m) by Babcock Nuclear Services at Building 2610 Aztec West and the 24,349 sq ft (2,262 sq m) letting to the Jelf Group at Hillside Court, Chipping Sodbury.

In the industrial sector, the lack of good quality immediately available modern buildings is impacting on take-up levels. With plenty of consented land available, an increase in mid-range enquiries and no speculative development in the core centres of Bristol, Gloucester and Exeter, Alder King anticipate design and build activity increasing into 2013. In addition, despite the difficulties in securing debt funding, there is increasing freehold demand from owner-occupiers and again a shortage of opportunities.

Simon Price, head of agency at Alder King, said: “Not surprisingly, a lot of deals currently being concluded are tenant-friendly, incorporating break clauses and significant incentive packages but the encouraging feature at the half year is that more deals are happening.”