The fourth quarter of 2025 (Q4) saw take up in Wales, for industrial units over 50,000 sq ft, reach circa 675,000 sq ft, according to the latest report from global property consultant Knight Frank.
The take up was around 250,000 sq ft higher than Q3 this year 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 is significantly down on the 2.7 million recorded last year.
Neil Francis, head of the Knight Frank Wales Logistics & 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 2025.
Availability in South Wales stood at 3.7 million sq ft by the end of 2025. Neil Francis said: “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 5 at Indurent Park, Newport next year that will deliver 338,000 sq ft of modern industrial and logistics space. Double digit rents are being quoted and will be achieved,” Neil Francis commented.
Commenting on the mid-box market for slightly smaller industrial units Neil Francis also welcomed the record headline rent 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, pre-let to FPS Distribution (FPS) on a 15-year lease.
Knight Frank Logistics & Industrial Associate Rhys Price also points out that Wales is leading the UK in the increase in rents being paid for Industrial Outdoor Storage sites, Knight Frank research shows. The report claims that Industrial Outdoor Storage – IOS – is emerging as a vital component of the UK’s industrial landscape, as occupier requirements diversify and business needs change.
“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 per cent, with Newport second at 20 per cent increase, and Cardiff third with 17 per cent rental growth.”
Rhys also highlights a positive movement in the market for smaller units in Wales. “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.”
Neil Francis also reflected on another highly successful year for Knight Frank’s industrial team. He said: “For the second year in a row we have transacted over 1 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 Grade A space.”
During 2025 Knight Frank’s Logistics & Industrial team handled more than £13 million in sales transactions, and lettings worth over £2.75 million per annum.
