Large industrial occupiers wanting to move in and around Glasgow face up to two years’ wait to achieve what they want. That’s the warning from Craig Semple from the GVA Industrial team in Scotland
The shortage of available modern premises means most clients are now being forced to consider pre-let options. Occupiers seeking space over 50,000 sq ft should not underestimate the timescales involved with a potential relocation, which can take up to 18-24 months of planning and negotiation.
The industrial market is in good health, but there is a clear need for new, quality stock in Scotland. Institutional investors are showing an appetite for industrial estates as rental growth continues, whilst developers are still cautious about building speculatively, therefore causing a delay in suitable new product.
GVA is currently advising occupiers with 300,000 sq ft of live market requirements. The local industrial market remains strong and we have seen particularly heavy demand in and around Glasgow, with North Lanarkshire also performing strongly. Over the past 18 months there have been a number of encouraging larger transactions from storage and distribution companies and online retailers like Bee-Inspired, who took 66,000 sq ft at Kinning Park, Glasgow which was fully refurbished by the landlord, Clearbell and was a clear choice due to being very centrally located for transport links and staffing.
Investing in internal and external refurbishment has also paid dividends for CEG at Westfield Park near the upgraded M80 at Cumbernauld, which has seen nine deals totalling 70,000 sq ft over the past 18 months. Latest recruit, pet product wholesaler Vital Pets has taken 2,000 sq ft in Mollins Court, a former office building converted to industrial with private yard area.
The good news for the area is that new businesses are being drawn to Westfield Park and bringing new jobs. Quality refurbishment work is creating desirable industrial pods. A high proportion of enquiries are becoming deals and GVA has a further 8,000 sq ft under offer and 15,000 sq ft discussing terms.