Feel-good factor returns for logistics and industrial property occupiers
THE ”feel-good” factor is slowly returning to logistics and industrial property occupiers in the West Yorkshire market, according to the latest research from global property consultancy Knight Frank.
Take-up for the first six months of this year was 1.1m sq ft, marginally above the H2 2012 total of 1.03m sq ft but up 63% year-on-year. However, only one deal involved new-build space – One Stop’s lease of 120,000 sq ft at Prologis Wakefield.
Knight Frank said an increase in design and build as well as speculative developments is expected, albeit on a smaller scale with units up to 20,000 sq ft.
Rental levels on sub-5,000 sq ft units have increased sufficiently to make development for this size range viable.
Owen Holder, logistics and industrial property partner in the Leeds office of Knight Frank, said: “Third party logistics remains the most active sector, with Norbert Dentressangle leading customer enquiry levels presently.
“A number of design and build enquiries are currently in the market, ranging in size from 80,000 to 120,000 sq ft, and primarily along the M62 corridor.”
Mr Holder said land supply is ample, with over 500 acres allocated in the Aire Valley and further availability in the M62 corridor between Junctions 30 and 36. He also said there are a small number of speculative schemes planned, the most notable by Wykeland, which is planning a trade counter scheme at Junction 32 M62.
