Demand for ‘big box’ lettings strong, says JLL
THE North West accounted for the largest volume of lettings of industrial space over 100,000 sq ft during the first half of 2012, according to research by agent Jones Lang LaSalle (JLL).
Its On Point report found the North West accounted for 24% of national Grade A deals compared to 3% in the South East.
JLL said manufacturing had been a major driver of demand, with the automotive sector performing particularly strongly, but logistics companies took the largest share in floorspace during the period.
Take-up higher was higher in the second quarter than in the first three months, and JLL expects this trend to continue.
Daniel Burn, director of industrial and logistics at JLL in Manchester, said: “Momentum is starting to build in the North West market and we expect the region to continue to outperform its peers over the remainder of the year.
“Manufacturing, a key North West sector, looks likely to contribute to further big box lettings while the lack of speculative new build space is now forcing occupiers to look seriously at build to suit solutions or secondary space.
“A trend we’re seeing nationally is the increasing appeal of port-centric space for manufacturers, retailers and logistics businesses alike. This makes schemes like Peel Ports’ post-Panamax terminal, Liverpool 2 hugely important for the region moving forwards and will ensure it continues to maintain its position as one of the UK’s leading destinations for investors’ cash.”
