Yorkshire boasts top UK deals as demand for industrial properties increases
Friday, 27 November 2015
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The latest Industrial Intelligence report released by leading UK commercial property adviser, Bilfinger GVA, reveals that demand for large warehouse and modern distribution units is on the rise as UK industrial land values continue to increase.
The Yorkshire region has enjoyed a strong year with demand from discounters and online retailers driving the uptake. The largest deals in the region were also amongst the largest in the UK, with pre-lets of c630,000sf and c520,000sf to TK Maxx and Poundworld respectively, as well as a further regional distribution unit (246,000 sq ft) for internet-giant Amazon at First Point, Doncaster.
With the lack of larger grade A space available in Yorkshire to meet increased demand, there has also been an increase in design and build interest for units over 100,000 sq ft. The mid-size market has too seen positive interest again from internet retailers and associated delivery companies. This is evidenced by John Lewis taking a 50,000 sq ft pre-let at Logic Leeds and parcels company Fedex taking the nearby 50,000 sq ft Connex 50 unit.
UK industrial land values have increased in the past year by circa 23%. Among signs of improved confidence and lending conditions in the region, occupiers are committing to longer leases, and for units up to around 50,000 sq ft, are showing increasing interest in purchasing.
Rob Oliver, Industrial Director at Bilfinger GVA in Yorkshire comments: "Demand for industrial property is generally healthy in Yorkshire. This is clearly illustrated by a wealth of deals which are amongst the largest in the country. As well as the deals with TK Maxx, Poundworld and Amazon, Spanish bakery subsidiary Siro UK have taken the 330,000sf Arrow unit in Worksop."
He continued: “As confidence in the market increases, occupiers are paying strong prices for secondhand freehold premises, due to their scarcity. Billfinger GVA is advising an occupier on the sale of a surplus 10 acre site at Wakefield, off Junction 40 of the M1, for which outline planning consent for employment use has just been granted by Wakefield Council. There is already considerable interest, with numerous developers tracking the site."
Roger Marsh, chair of the Leeds City Region Enterprise Partnership (LEP) added: “The latest industrial report from Bilfinger GVA demonstrates just how the City Region is blossoming with increased occupation from the UK’s major retailers and a rise in investment for new developments."
For more information, please contact Rob Oliver, Industrial Director on 0113 280 8034 or Rob.Oliver@gva.co.uk