Bristol's Logistics Sector Is Well Positioned for Growth in 2025, but an Air of Caution Remains
Colliers says Bristol remains one of the UK's most important regional logistics centres, helped by its history in industry, science and aerospace and by its location on the M4/M5 corridor. Occupiers have been cautious and the market has cooled somewhat, but underlying conditions are still sound and sentiment is broadly positive.
Colliers' Industrial & Logistics Market Pulse shows that by Q4 2024 more than 3.1 million sq ft of warehouse space was available, up 2.8% on a year earlier and 59% higher than the five-year average. Most of that space sits in four schemes: Panattoni Park Avonmouth 885 and 410 (884,219 and 407,367 sq ft), Mountpark Bristol 360 (360,926 sq ft) and C344 Indurent Park, Chippenham (343,754 sq ft).
Developers are still building speculatively. Equation and BGO are constructing a 235,235 sq ft unit at Matrix 49, due in the second half of 2025, while Indurent is delivering a 215,362 sq ft unit at Access 18, Avonmouth, plus 235,000 sq ft across four mid-sized units, all expected by the end of 2025.
Smaller multi-let space is scarce, especially within the M4/M5 corridor. Cubex Land and Fiera Real Estate have finished Skyline, an urban logistics development of 75,000 sq ft, but most other stock is refurbished older space. The shortage has pushed rents to £15.00 per sq ft or more, with a premium in the city centre near Bristol Temple Meads.
Occupiers are examining costs closely after the Autumn Statement, high interest rates and higher National Insurance contributions. Even so, rents rose 5.6% (MSCI) over the past year. No deals above 100,000 sq ft have been done recently, but big box rents are around £9.00 to £9.50 per sq ft, with incentives back to pre-pandemic levels of roughly 10 to 12 months rent free on a ten-year lease.
Colliers concludes that the space is in place to meet demand, but confidence will depend on active discussions turning into signed deals. If they do, Bristol should have a solid 2025.
