This region is strategically located at the western end of the English stretch of the M4 and with several motorway links it stands as a gateway to the South West, Wales and Southern West Midlands. Comparatively cheap land values coupled with improving motorway access has acted as a draw for inward investment by developers and kick-started occupier interest in the region as these schemes gain critical mass.
The combination of speculative development activity by St Modwen, Mountpark and Trebor and a rebound in investor interest has given this regional logistics market real momentum. Several household name occupiers such as Amazon, DHL and Wincanton have made large commitments to the region, attracted by access to the motorway network and the pending opening of the new M49 junction, which in turn has also created a ‘pull factor’ for other occupiers. Ongoing development at Central Park and Epta’s plans for the 1.9m sq ft scheme at the 100-acre Avlon Works (to be branded Axis South) will bring much-needed good quality supply. This is likely to attract occupiers and help drive rental growth, which we predict will average 2% per year over the next 3 years, above the 1.8% national average.