Subdued start to the year for industrial – CBRE

TAKE-up of industrial and logistics space in the Midlands was subdued during the first quarter of 2013 with less than 300,000 sq ft transacted, according to research by CBRE.

In the first three months of the year, take-up of new and secondhand units above 100,000 sq ft totalled just 290,000 sq ft, split between two deals including Laidlaw Interiors Group’s 120,000 sq ft letting at Unit 1 at The Hub in Aston, Birmingham, and the 150,000 sq ft letting to MWW at Altitude in Witton.

Richard Meering, senior director in the industrial agency team at CBRE in Birmingham, said the low take-up level is symptomatic of the scarcity of ready-to-occupy space, particularly in prime locations.

He said: “It’s no secret that the Midlands industrial and logistics market is suffering from a severe shortage of available quality space, especially along key infrastructure corridors, such as the M1, M6 and M42.

“As the figures demonstrate, this shortage has led to a significant slowdown in take-up across the region as the number of remaining units ready for immediate occupation continues to dwindle. The other key factor worth noting is that companies are taking longer to make decisions.”

Despite the lack of take-up during the first quarter, Meering said there is still a significant amount of activity in the market.

“The take-up figures only tell part of the story,” he said. “Behind the scenes there is lots happening. German company Dascher Transport, for example, has recently signed on a 300,000 sq ft pre-sale turnkey unit at Roxhill’s Brackmills Point, Northampton, having identified the site back in September 2012.  BSS is also expected to sign on a 150,000 sq ft speculative unit known as Measham 42 in the next couple of weeks.

“There are also active requirements for Costco, which is looking for bespoke premises along the Golden Triangle on a site of 30 to 50 acres, DPD/Geopost, which has a 300,000 sq ft bespoke requirement, and Hermes (formerly Grattan), which is looking for around 200,000 sq ft of bespoke space, again in the Golden Triangle.

“This clearly demonstrates that there is still strong demand for property at core sites in the Midlands and that deals are being done and stock continues to be eroded.”

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