Record low levels of industrial stock recorded across the region

The Yorkshire and Humber industrial market has had a stellar start to the year with 2.9m sq ft (269,418 sq m) transacted in H118, leading to record low levels of industrial stock available.

Figures released by Savills show that only 2.5m sq ft (232,257 sq m) is currently available in the region, as take up soared to 294% above H1 2017 levels. The ten deals recorded in the first half of the year all involved existing units, with only three units added to the market, resulting in further shortfall.

In Yorkshire, take up was driven by four large deals of over 300,000 sq ft (27,871 sq m) including Clipper Logistics leasing 615,000 sq ft (57,135 sq m) at Sheffield 615. This has resulted in only four Grade A units currently available in the market.

Developers are responding to the lack of Grade A supply and there are currently six units under construction totalling 1.1m sq ft (102,193 sq m), according to Savills. The majority of the new development is concentrated in the Doncaster area, where four of the units are being developed.

Dave Robinson, director in the industrial agency team in Leeds, said: “The Yorkshire and Humber industrial market continues to go from strength to strength. The current pressure on supply coupled with the take up strong occupier demand leads us to believe that rents will reach £6 per sq ft in the next 12 month, up from £5.75 per sq ft.”