Supply

Over the past year, supply and vacancy levels across the South West have been improving. By the end of June 2025, supply reached 2.29 million sq ft across ten units, with a vacancy rate of 6.52%. Compared to the same period last year, supply has fallen by 63%, and vacancy has decreased by 407 bps. The rebalancing of supply and demand has been supported by increased deal activity, particularly for larger units.

An analysis of the available supply by Grade shows that new, speculative Grade A space makes up the majority of the supply, at 48%, reflecting the substantial amount of speculative development in the region during the pandemic. 8% is second-hand Grade A space, 30% is Grade B space, and 14% is low-quality Grade C space.

Regarding unit sizes, there are four units available in the 100,000–200,000 sq ft range, four in the 200,000–300,000 sq ft range, one in the 300,000–400,000 sq ft range, and one in the 400,000–500,000 sq ft range. Currently, there are no units over 500,000 sq ft, following GXO’s lease of Panattoni’s Avonmouth 885 unit, which covers 884,219 sq ft, in Q2 2025.

Currently, only one unit is under offer, totalling approximately 253,906 sq ft, and is expected to exchange in H2 2025. Bristol 360, which has remained on the market since Q3 2021, finally completed in the latter stages of the quarter, boosting volumes with an additional 360,000 sq ft of take-up.

Take-up

As mentioned, supply-demand dynamics in the South West have rebalanced in 2025, with take-up levels exceeding those of the entire previous year. H1 2025 take-up totals 2.98 million sq ft, 239% higher than the same period last year, already 138% above the total take-up for the region in 2024.

This has been primarily driven by some large deals this year, notably GXO, Marks & Spencer, Waitrose, and Wincanton, which together account for 1.93 million sq ft, or 64% of H1 2025’s total activity. As a result, H1 2025 has surpassed the long-term annual (H1) average by 192%. Typically, the region transacts around 1.02 million sq ft across four deals in the first half of the year.

In terms of specifications, 35% of the space transacted this year was second-hand, 45% was newly speculative developed space, and 20% was BTS space. By grade, this equates to 57% Grade A speculative space, 12% Grade A space, and 31% Grade B space.

By size range, there have been four transactions within the 100,000–200,000 sq ft size range, one in the 200,000–300,000 sq ft size range, four in the 300,000–400,000 sq ft size range, and one unit over 500,000 sq ft. These results, when compared to the region’s long-term (H1) average, suggest above-average activity. Historically, there have been three transactions in the 100,000–200,000 sq ft size range, two in the 200,000–300,000 sq ft size range, two in the 300,000–400,000 sq ft size range, one in the 400,000–500,000 sq ft size range, and one exceeding 500,000 sq ft. For the entire year of 2024, the region’s average deal size was 156,298 sq ft; over the first six months of 2025, it increased significantly to 297,885 sq ft.

3PLs remain the leading sector, accounting for 51% of take-up in H1 2025. 3PLs have taken 1.53 million sq ft in H1 2025, a figure 469% higher than the long-term H1 average and 192% higher than the same period last year. Manufacturing-related occupiers account for the remainder of the activity, at 12%, followed by high street retailers at 11.7%.

Development pipeline

Currently, four speculative units are under construction, totalling 2.26 million sq ft. One unit is scheduled for completion (PC) in Q4 2025, providing 215,364 sq ft. The remaining schemes are scheduled for completion in Q1 2026, totalling 2.05 million sq ft, with each unit exceeding 500,000 sq ft; the largest unit is Panattoni Park Swindon S915, at 915,000 sq ft.

>> Publication Homepage