Bristol’s Logistics Sector is Well-positioned For Growth in 2025, But an Air of Caution Remains

Posted by Colliers on 14th April 2025 -

Bristol's rich heritage in industry, science, innovation, and aerospace continues to shape its presence as a key player in the UK's logistics sector. The city boasts a long-standing history across a range of sectors which will continue to attract investment and strengthen its reputation of one of the UK’s key regional logistics hubs.

Whilst there has been well-documented caution amongst occupiers, the fundamentals of the region remain strong, albeit with signs of cooling compared to previous years. The wider economic climate continues to put pressures on the market but despite its obvious challenges, there is positive sentiment within the market. As a key regional logistics hub, Bristol’s strategic position along the M4/M5 corridor continues to reinforce its critical role in the UK’s supply chain.

The latest data from Colliers’ Industrial & Logistics Market Pulse highlights an increase in supply, with warehouse availability surpassing 3.1 million sq ft in Q4 2024, reflecting a 2.8% year-on-year increase and a remarkable 59% above the five-year average. 

While supply levels have increased, these statistics only tell part of the story. This growth in supply is largely concentrated around four key developments – Panattoni Park Avonmouth 885 and 410 (884,219 sq ft and 407,367 sq ft respectively), Mountpark Bristol 360 (360,926 sq ft), and C344 Indurent Park, Chippenham (343,754 sq ft). 

Despite the current warehouse availability, there is strong confidence in the region, as developers continue to make significant investments and commit to new speculative projects. Equation and BGO are currently on site at Matrix 49, where they are constructing a new 235,235 sq ft unit, set to be completed by H2 2025. Meanwhile, Indurent has moved forward with their next phase of development at Access 18, Avonmouth, which includes the construction of a 215,362 sq ft unit, along with an additional 235,000 sq ft across four units in a new mid-box scheme. All projects are expected to be completed by the end of Q4 2025.

Within the smaller multi-let sector, supply remains very tight, particularly within the constraints of the M4 / M5 corridors. Cubex Land and Fiera Real Estate have now reached practical completion their new 75,000 sq ft urban logistics scheme at Skyline, whilst the remainder of the Bristol multi-let market generally comprises refurbished secondary stock. This lack of development has put pressure on rents with deals now regularly achieving upwards of £15.00 per sq ft exclusive, particularly within Bristol City Centre where occupiers will pay a premium to benefit from greater amenities and proximity to Bristol Temple Meads.

The high levels of new development in the region clearly indicate a sense of optimism in the market, especially in the mid- to large-box sectors, where there is strong interest and advanced discussions already taking place. However, developers and investors will likely gain more confidence once these discussions result in actual deals and occupancy levels begin to rise.

The impact of the Autumn Statement, high interest rates, and National Insurance contribution increases have all taken their toll on occupiers as they continue to take a more forensic review of their requirements and scrutinise every cost associated with potential relocation or expansion plans. 

Despite this caution, Colliers’ research has recorded 5.6% (MSCI) rental growth over the course of the past 12 months as headline rents remain firm. Although there has been a lack of deals over 100,000 sq ft, headline rents in the region for the big box market are now achieving between £9.00 – £9.50 per sq ft, but tenant incentives have moved out slightly and are now in line with pre-pandemic levels of approximately 10–12 months’ rent free on a 10-year term. 

It is clear then that Bristol remains a strategic logistics hub within the South West. Developers and investors continue to commit to the region and occupier demand appears to be growing following a couple of quieter years in terms of take up. 

Having the supply in place and immediately available to absorb demand is one thing, getting occupiers to commit to expansion plans is another. If this does start to fall into place, then Bristol is certainly well-positioned for an encouraging and resilient 2025.