Exploring the Swindon Commercial Property Market – Smethurst Commercial Property Consultants

In recent years, the Swindon commercial property market has been subject to a series of transformative forces. The looming spectre of Brexit, coupled with the seismic shockwaves of the COVID-19 pandemic, has led to a re-evaluation of established norms and practices. Traditional sectors such as office and retail have witnessed profound shifts in demand, utilization, and investment patterns, necessitating adaptability and agility from market participants.

Despite the challenges posed by the COVID-19 pandemic, Swindon’s office market has shown resilience, with demand for office space driven by factors such as corporate relocations, and new market entrants. As businesses adapt to the evolving landscape, the demand for high-quality office space in Swindon remains of paramount importance. Prime rents in Swindon currently stand at £23 per sq ft following the letting of Unity Place to Zurich. This figure represents a 30% increase on the 2021 headline of £17.50 per sq ft yet the town still offers exceptional value when compared against other M4 corridor locations.

Swindon’s status as a regional economic centre, coupled with ongoing urban redevelopment initiatives in the Town Centre will provide opportunities for growth and innovation, driving continued investment and development in the town’s commercial real estate sector. FI Real Estates’ comprehensive refurbishment of 1 Newbridge Square and Palm Capitals refurbishment of Whitehill House on Windmill Hill Business Park stands testament to this.

Transactions in 2023 may have been smaller than in previous years but there has been a noticeable shift to better quality space, and we are seeing a return to the office environment by many occupiers. This is demonstrated by lettings at Churchward to BLB Solicitors and at Edison Park to Colas Rail. In addition, several deals of excellent quality refurbished space have taken place at Delta Office Park and 3 Newbridge Square in the Town Centre. As businesses adapt to the evolving landscape, the demand for high-quality office space in Swindon is expected to remain.

With its strategic location, and robust infrastructure, Swindon’s industrial market is attracting businesses seeking to optimize their supply chains and capitalize on the town’s logistical advantages. With a surge in e-commerce and the increasing need for last-mile delivery solutions, demand for industrial commercial property in Swindon has increased. Vacancy rates remain low, and occupancy levels are high, reflecting the attractiveness of the town as a logistics and distribution hub. As businesses continue to adapt to evolving consumer trends and supply chain dynamics, the demand for industrial space in Swindon is expected to remain robust.

Despite its many strengths, the Swindon industrial commercial property market is not without its challenges. Limited availability of prime industrial land can pose obstacles to development and investment. That said the Swindon industrial commercial property market presents compelling investment opportunities for investors seeking stable income streams and long-term capital appreciation. The development of Swindon Trade Park and the planned Panattoni Park on the old Honda site highlight the attractiveness of the town to investors and developers.

With strong fundamentals, steady demand, and limited supply, it is anticipated that there will be upward pressure on rents for industrial assets in Swindon. Prime industrial rents are currently £8.75 sq ft.

Despite a reduction in take up in 2023, this does not provide a fair reflection of the demand in the market. There is strength in the mid-market size range with several transactions in the 20-30,000 sq ft bracket taking place. The most notable transactions were Gridserve at Westmead, Oxwash at South Marston, ACI Express at Dorcan, and Vestey Foods at Blackworth. There is also healthy demand for sub-5,000 sq ft units

Despite the challenging economic headwinds, the future looks bright for the Swindon commercial property market. With its strategic location, diverse economy, and robust demand drivers, Swindon is well-positioned to capitalize on emerging trends and opportunities going forward.