Industrial and logistics space take-up hits three-year high
Take-up of space in the industrial/logistics market in West Yorkshire and Humber in 2024 hit a three-year high of 2.1 million sq ft (units over 50,000 sq ft), according to property consultancy Knight Frank’s latest Logic Report.
This represents a 25% increase from 2023 levels and reflects the pre-pandemic five-year average.
Iain McPhail, partner in Knight Frank’s Yorkshire Industrial & Logistics team, said: “Although quarter four was a quieter quarter, with just two transactions totalling 200,000 sq ft, an additional 932,000 sq ft of space was under offer at year-end, boding well for a strong start to 2025.
“The delivery of new speculative schemes to the region over the past 18 months has played a crucial role in boosting take-up volumes.
“Five speculatively built units were signed up in 2024 – contributing to 23% of the year’s total – compared with just one in 2023.
“In addition, the return of second-hand space has also provided occupiers with more choice, resulting in a 45% annual uplift in take-up of second-hand space.”
While distribution firms accounted for 34% of 2024’s take up, some large transactions by manufacturers boosted their share of the total to 44%, from 25% the previous year.
During 2024, manufacturers took 859,000 sq ft of space, up from 407,000 sq ft in 2023 and 262,000 sq ft in 2022.
McPhail said: “2024 has seen industrial and logistics take up in the region return to the pre-pandemic average of around two million sq ft (units 50,000 sq ft plus).
“We’ve seen several large units transact to manufacturers, notably on a freehold basis, including the former Hallmark Cards facility in Bradford (315,000 sq ft), sold to Airedale, and the former Ilke Homes factory (275,000 sq ft) in Knaresborough, acquired by Shepley Spring.
“While the distribution market continues to transition from the super-charged COVID conditions as well as focus on back-filling ‘grey-space’, there have been a handful of property transactions in this sector during the year.
“Notably, Oakland International and Campeys of Selby taking two of the three speculative new-build units at Konect 62 in Selby, amounting to around 220,000 sq ft of space.
“Prime, new build space has performed well this year with four out of the six speculative mid-box units at Leeds Valley Park either let or under offer, 4th Industrials’ two-unit Interchange 26 development in Cleckheaton is now fully let, and UBS’s Velocity Point scheme in Leeds centre has only one unit remaining.”
Graham Foxton, Knight Frank partner Leeds Capital Markets, added: “West Yorkshire & the Humber has experienced strong levels of investment activity in 2024, with year-on-year figures showing roughly double the investment volume seen in 2023 at the time of writing.
“This shows buyers and sellers are aligning in their pricing expectations, and we expect demand for the industrial sector to continue throughout the region in 2025.”
