North West industrial lets slow
THE North West’s industrial market had the highest level of activity of all the UK regions last year, according to data from Lambert Smith Hampton.
Take-up reached 12.5 million sq ft, although this was down 12.4% on the previous year’s levels and the lowest since 2007.
LSH’s Industrial and Logistics Market 2013 found the most significant downturn in activity was in Greater London and the South East where it slumped 41% and 45% respectively.
It said the North West was helped by improving levels of demand from the manufacturing sector.
Take-up of medium-sized business units – up to 50,000 sq ft – fell significantly with overall activity in the UK down 34% on the previous year.
The North West registered a 50% slump, explained by a lack of stock and the impact of the weak economy on small and medium-ssized businesses.
Prime rents remained stable in the region with secondary rents also stabilising. Availability increased 6% but grade A supply continued to reduce, falling to 3.2 million sq ft.
Andrew Aherne, head of industrial and logistics in the LSH Manchester office said: “We believe the lower levels of activity in 2012, were due to the reduced stock of grade A space, down 60% from five years ago.
“Several developers have begun preparing sites for the next development cycle. Canmoor, owners of SEGRO’s Trafford Park and Heywood portfolio, are preparing sites for development and it is anticipated that there will be further small scale speculative schemes starting in 2013 to meet increasing levels of demand.”
LSH said the manufacturing sector was particularly active in 2012 with companies such as Rochdale-based Tygavac, Oldham’s Ferguson Polymer, and Manchester’s Comfy Quilts all taking more space.
Other key deals included Asda’s purchase of a 600,000 sq ft distribution centre in Rochdale for £325,000/acre and the letting of 405,365 sq ft industrial unit in Ellesmere Port to Jaguar Land Rover for £4.45/sq ft.
