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Fall in take-up of large industrial space in Wales

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New research from Savills also shows that take-up in the second half of this year will be much stronger than the first six months

Computer generated image of the next phase of development at Indurent Park Newport.

Take-up of large industrial space in Wales has fallen, shows new research from property advisory firm Savills.

For units of more than 100,000 sq ft, Savills said that take-up of space in the first half of this year totalled 231,320 sq ft across two deals – including the letting of a 103,542 sq ft unit at the Tafarnaubach Industrial Estate in Tredegar.

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This represented a 20.3% decrease compared on the first half of 2025. With 94% of available warehouse space comprising grade C units, Savills says there is significant scope to reposition older assets and deliver new speculative development to meet occupier demand for best-in-class space.

Both transactions completed during the first half of the year involved units in the 100,000–200,000 sq ft size bracket, underlining the long-established preference for smaller big box units in Wales. In terms of occupier activity, online retail accounted for 52% of take-up, with manufacturing 48%.

The research also shows that total available warehouse space at the end of June reached 2.66 million sq ft, an increase of 7.8% from 2.47 million sq ft at the start of the year. This equates to a vacancy rate of 3.33%, up from 3.09% at the end of 2025. Based on average five-year annual take-up levels, there is currently 1.64 years of available supply in the market.

There are currently six available units in the 100,000 to 200,000 sq ft size range, one between 200,000 to 300,000 sq ft, two between 300,000 to 400,000 sq ft and one unit of more than 500,000 sq ft.

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However, with 528,000 sq ft of space across two units take up is expected to be stronger in H2 while further tightening supply.

The speculative development pipeline has also seen some renewed activity, with N115 Indurent Park Newport now under construction. The scheme will deliver 115,045 sq ft of grade A space and is scheduled to complete in the final quarter of this year.

Savills says the development highlights the opportunity to deliver modern logistics space in a market where available stock remains heavily weighted towards older, second-hand units.

Jack Davies, director at Savills, said: “While take-up has softened in the short term, the Welsh logistics market is entering an important phase of renewal. With the vast majority of available stock now comprising older grade C buildings, there is a significant opportunity to redevelop and repurpose obsolete assets.

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“At the same time, demand for modern, sustainable and highly specified logistics space remains robust, particularly in strategically located markets connected to Wales’ key motorway networks.”

Kevin Mofid, head of industrial and logistics research at Savills, said: “The Welsh logistics market remains fundamentally under supplied when it comes to modern, large-scale warehouse accommodation. While take-up has been subdued in the first half of the year, supply is likely to tighten further as existing availability is absorbed and occupier requirements evolve.

“Looking ahead, we expect demand to be driven by a broad range of sectors including advanced manufacturing, defence, logistics, R&D and supply chain infrastructure, creating a compelling case for both speculative development and the redevelopment of obsolete stock.”

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Altius Minerals Corporation (ALS:CA) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Company Participants

Flora Wood – VP of Investor Relations & Sustainability and Corporate Secretary
Stephanie Hussey – Chief Financial Officer
Brian Dalton – Co-Founder, CEO & Director
Ernie Ortiz Ortega – Co-Founder, President, CEO & Director

Conference Call Participants

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Shane Nagle – National Bank Financial, Inc., Research Division
Gabriel Chu
MacMurray Whale – ATB Cormark Capital Markets Inc., Research Division

Presentation

Operator

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Good morning, ladies and gentlemen, and welcome to the Altius Q2 2026 Financial Results Conference Call.

[Operator Instructions] This call is being recorded on Tuesday, August 11, 2026.

I would now like to turn the conference over to Flora Wood, VP of Investor Relations. Please go ahead.

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Flora Wood
VP of Investor Relations & Sustainability and Corporate Secretary

Thank you, Vincent. Good morning, everyone, and welcome to our Q2 2026 conference call.

Our press release and interim filings came out yesterday after the close and are available on our website. This event is being webcast live, and you’ll be able to access a replay of the call along with the presentation slides that have been added both to the home page in the Investors section of our website at altiusminerals.com.

Brian Dalton, CEO; and Stephanie Hussey, CFO, will speak on the call; and Ernie Ortiz, VP Corp Dev and Head of Lithium is also here as a resource for us in the Q&A.

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The forward-looking statement on Slide 2 applies to everything we say both in our formal remarks and during the Q&A session. And with that, Stephanie is up first to take us through the numbers.

Stephanie Hussey
Chief Financial Officer

Thank you, Flora, and good morning, everybody.

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Yesterday, we reported Q2 net earnings of CAD 8.6 million or CAD 0.16 per share, reflecting higher revenues and higher

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Watch: Cambridge United boss says housing costs deter players

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Cambridge United's director of football speaking at a fans' forum

Cambridge United’s director of football says the cost of property in the city is “an issue” when it comes to attracting players.

Mark Bonner made the comment at a fans’ forum ahead of the new season.

He was responding to a question about whether the cost of living in Cambridge, one of the most expensive places to live outside London, put off some potential new signings.

The U’s kick-off their League One campaign on Saturday when they host Wigan at the Cledara Abbey Stadium.

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Target appoints chief AI officer Chandhu Nair

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Target appoints chief AI officer Chandhu Nair

A Target logo is displayed on a sign outside of a department store on March 23, 2026 in San Diego, CA.

Kevin Carter | Getty Images News | Getty Images

Target announced it has appointed its first ever chief artificial intelligence officer on Tuesday in the retailer’s latest bet to capitalize on the AI boom.

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The company named Chandhu Nair as its chief AI officer and senior vice president and also announced Purvi Shah as the company’s senior vice president of user experience.

“The most meaningful AI stories won’t be about what happens in a lab,” Nair said in a statement. “They’ll be about what happens on the front line – how we make shopping easier for a guest, give a team member a better tool, make a business decision with more confidence or bring a new idea to market faster.”

Nair previously worked at home improvement retailer Lowe’s as the company’s senior vice president of stores, data, AI and innovation. He has also held roles at Staples and Gap.

In his statement, Nair said he’s focused on a “more coordinated approach” to AI for Target, including improving how the retailer manages inventory or enabling faster decisions.

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As it looks to win back shoppers and investors, the company has been investing in generative AI, including a tool called Target Trend Brain, which helps the retailer get ahead of trends and identify the styles, colors and materials that customers will be searching for. And last holiday season, Target launched a new conversational AI program to help customers find the right gift for the people on their shopping lists.

The Tuesday announcement comes as many major retailers have been racing to keep up with the AI boom and integrate it into their business strategies.

Target’s rival Walmart has been rolling out AI tools and agents across its stores and supply chains to enhance the customer experience and make its internal employee processes more efficient. Gap announced a partnership with Google‘s Gemini earlier this year, and Best Buy has collaborations in place with OpenAI and Google.

Retail company executives have been sizing up the AI transition and how it will evolve in the coming years. Former Walmart CEO Douglas McMillon told CNBC’s “Squawk Box” in December that he decided to hand over the reins of the global retailer to someone “faster” who could tap into the ways AI could accelerate the business. John Furner took over the post from McMillon in February.

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“About a year ago, I really started feeling like this next run, you could see what agentic commerce was going to look like, the vision for AI shopping, and I started thinking about everything that needs to happen over the next few years, and it really caused me to think that now was the right time [to step down],” McMillon said at the time.

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PepsiCo expands into refrigerated foods

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PepsiCo expands into refrigerated foods

The company is bringing its Alvalle brand into the US.

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Bicara Therapeutics Inc. (BCAX) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript