Knight Frank has published latest figures on the take-up of large industrial space in Wales
The lack of large grade A large industrial space in Wales is holding back investment with overall take-up in 2025 down on a year earlier, shows new research from Knight Frank.
Industrial units of more than 50,000 sq ft, saw take up of 675,000 sq ft in the final quarter (Q4) of last year. This was 250,000 sq ft higher than Q3, but down considerably on the same period in 2024. These figures comprise two lettings and three sales, including 165,000 sq ft at Queensway Way Meadows, Newport and 200,000 sq ft on Swansea Enterprise Park.
The activity pushed take up for 2025 to just over 1.7 million sq ft, which was significantly down on the 2.7 million recorded in 2024.
Neil Francis, head of the Knight Frank Wales logistics and industrial team based in Cardiff, said: “This drop from last year is at least partly accounted for by there being no available grade A space in South Wales of this size throughout last year.”
Availability in South Wales stood at 3.7 million sq ft at the end of 2025.
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Mr Francis added: “Again this is an increase on last year but frustratingly much is poor quality accommodation in secondary location where redevelopment or higher value uses are not viable.
“A number of enquiries have stalled due to lack of new build and discussions about pre-let are becoming more common place.
“This has given confidence to Indurent to progress with a new phase five at Indurent Park, Newport that will deliver 338,000 sq ft of modern industrial and logistics space. Double digit rents are being quoted and will be achieved.”
Mid-box market for slightly smaller industrial units in Wales reached a record headline rent. This was achieved by property owner London Metric Property Plc which completed the development of its new 36,000 sq ft Axis 32 logistics warehouse at Junction 32 of the M4 in Cardiff and pre-let to FPS Distribution (FPS) on a 15-year lease.
Knight Frank logistics and industrial associate Rhys Price said that Wales is leading the UK in the increase in rents being paid for industrial Outdoor Storage sites, Knight Frank research shows.
He said: “Our research shows that Swansea, Newport and Cardiff took the first three places in the latest national league table of annual rent increases for this category of land. Swansea showed the strongest national annual growth at 23%, with Newport second at 20 per cent increase, and Cardiff third with 17% rental growth.”
Mr Price said there is also positive movement in the market for smaller units in Wales. He added: “It is very positive to see small business unit schemes being developed, such as the second phase at Pencoed by JG Francis, and 2026 will also see Dawan Developments enter the market again with new schemes in Bridgend and Abercynon, with Cyncoed Properties also getting involved with a proposed new scheme in Nelson.”
Mr Francis said that 2025 was another strong one for Knight Frank’s Cardiff-based industrial team. He said: “For the second year in a row we have transacted over one million sq ft of space which is a testimony to the strength of the team and our position in the market – and is even more striking given only one of these deals involved Ggrade A space.”
In the Welsh marketplace last year Knight Frank’s team handled more than £13 in sales transactions, and lettings worth over £2.75m per annum.
