Retailers push demand for industrial space
THERE was strong demand for industrial space in the first half of the year according to new data from CBRE.
Its UK Logistics report shows 3.2 million sq ft was acquired in the region during the period, up from 2.3 million sq ft last year, and almost equal to last year’s annual total.
Completed deals included Asda’s construction of 630,000 sq ft at Kingsway Business Park in Rochdale, B&M’s acquisition of 456,000 sq ft from Highcross at The Big Rack in Knowsley, and Jaguar Land Rover buying 405,000 sq ft for a new parts warehouse in Ellesmere Port.
Deals completed in the region account for 27% of the UK total, say CBRE, closely followed by the South East with 26% and the East Midlands with 20%.
A total of 10.6 million sq ft industrial space (units of 100,000 sq ft and above) was acquired across the country in the first half.
Of the total, design and build (D&B) requirements accounted for 5.5 million sq ft, predominantly driven by retailers.
Mike Walker, senior director of the industrial agency at CBRE, said: “The erosion of availability of new space across the country has slowed due to the renewed focus on design and build. In contrast, secondhand availability has begun to grow again and is dominating the market in the North West – this is largely down to the current supply structure.
“Less than 10% of the current 4.1 million sq ft of available space in the North West is now classified as new. The largest of the three available buildings is just 175,000 sq ft, so all existing requirements will need to seek a design and build solution if a new facility is required.”
