Welsh Industrial Space Take-Up Shows Mixed Trends in First Quarter
New research from global property consultant Knight Frank reveals that the take-up of large industrial space in Wales reached 344,882 square feet in the first quarter of 2026. This figure represents a significant increase of approximately 50,000 square feet compared to the same period in 2025. However, it marks a notable decline from the 675,000 square feet recorded in the final quarter of 2025. In this context, large units are defined as those exceeding 50,000 square feet in size.
Key Deals Driving the Market Activity
Neil Francis, head of Knight Frank's industrial team based in Cardiff, provided insights into the transactions that contributed to this quarter's performance. The take-up comprised two lettings and two sales, with the largest deal being the sale of the 111,000 square foot former Liberty Steel facility in Tredegar. This property was sold to an existing South Wales-based manufacturer, which plans to utilize it as a second facility in the region, signaling continued industrial expansion.
The second significant sale involved the disposal of unit one at Hirwaun Industrial Estate to the Welsh Government. The Cardiff Bay administration acquired a surplus distribution unit from IG Design Group, a business specializing in Christmas crackers and stationery, for £3.15 million. The government now intends to invest an additional sum of just over £6 million to upgrade the building, which spans 97,300 square feet and includes six acres of development land. This project aims to create modern industrial space to attract inward investment and support local firms in their growth efforts.
Market Dynamics and Future Prospects
According to Knight Frank's research, the availability of industrial stock in Wales has increased to 4.6 million square feet, up from 3.7 million square feet at the end of 2025. This rise was partly influenced by the return to the market of the 900,000 square foot former Wilko facility in Magor, which is reportedly earmarked for a major data centre investment, highlighting a shift towards high-tech industrial uses.
Mr. Francis noted positive developments in new construction, with Indurent leading the way by having 350,000 square feet under construction at Indurent Park in Newport. This development offers units ranging from 45,000 to 115,000 square feet and is expected to become available from the fourth quarter of 2026, with early interest already being observed. Additionally, an 85,000 square foot high-bay warehouse project at Blackwood Business Park in Caerphilly is nearing completion, further expanding the industrial landscape.
Despite the quarterly dip, Mr. Francis described the market as inconsistent but active, with general activity levels surpassing what the take-up figures might suggest. He highlighted that over 800,000 square feet of space is currently under offer to occupiers, indicating that the second quarter of 2026 could be significant for the market if legal processes proceed successfully. This underscores a cautiously optimistic outlook for Welsh industrial property in the coming months.
