Growing optimism in industrial sector
TAKE-UP of industrial space has grown by 88% in the first half of the year.
Research by property firm CBRE shows 1.255m sq ft was let in Yorkshire in the first six months of 2012 and the region is well-placed to capitalise on growing confidence.
Toby Vernon, senior director of Industrial Agency at CBRE’s Yorkshire offices, said: “There were some encouraging signs of a resurgence in occupier interest at the start of the year, with requirements from some large retail names. However, as economic uncertainties grew and concerns about the strength of the Eurozone returned, occupiers once again retreated.
“Interest has emerged from high street and online retailers, particularly discounters who continue to expand. Nevertheless the region, particularly South and West Yorkshire, has the potential to benefit once confidence returns and since the start of the summer there has been an upturn of interest.
“The availability of stock within this region has created an opportunity for occupiers and the larger schemes in particular are now unique across the UK.”
Figures from Knight Frank also suggest the logistics and industrial market has improved markedly in the south of the region.
The market saw 835,200 sq ft let in units over 50,000 sq ft in the first half, almost matching the total for the whole of 2011.
Knight Frank partner Rebecca Schofield said: “The results for the first half of the year have been encouraging. As recent pre-lets such as Home Décor at Woodhouse Link and Andrew Page at Markham Vale demonstrate, occupiers are now pursuing design and build to satisfy their requirements.
“In broad terms, however, design and build remains uncompetitive in the region as favourable terms are on offer on standing stock, particularly in premises of 150,000 sq ft plus.”
