North West big shed lettings remain strong

LOGISTICS leasing activity across the North West accounted for 20% of all UK big shed deals in 2009, according to a new property report for the sector.

The region saw the second highest proportion of leasing activity in the logistics market last year, according to CB Richard Ellis’ Logistics Market Report.

The largest deal of the year – B&M Retail’s acquisition of 618,000 sq ft at The Vault in Speke – was in the North West. The region saw four other transactions over 200,000 sq ft, including Interserve taking 236,000 sq ft at Pioneer Point in Ellesmere Port.

While quality stock was at a subdued level at the beginning of the year, the collapse of occupiers such as Woolworths and MFI increased supply, the report said.

By the end of the year the North West had the second highest proportion of supply with a 21% market share, just behind the South East, which had 24%.

 Howard George, senior director of Industrial at CBRE North West, said: “One of the most notable characteristics of 2009 was the significant lack of new units coming onto the market – across the whole of the UK early marketed space stood at only 2.7m sq ft which accounts for just 5% of the overall availability – and a limited supply of larger facilities.

“This provides a great opportunity for Merseyside as the majority of sizeable units are located within the region and bring hope that we will land some of the major deals over the next 12 months.”