Development site "one to watch" as industrial stock hits historic low

A 29-acre site in South Yorkshire is in “pole position” to attract large occupiers looking for design and build opportunities to the region, its owner says.

Following recent reports that levels of industrial and warehouse stock in the South Yorkshire area are at a historic low, with only three units over 100,000 sq ft ready to occupy, St Paul’s Developments has identified its 29 acre Smithy Wood site as a prime location for large occupiers.

Knight Frank’s recent H1 2014 logistics report cited that occupier demand was upbeat in the first half of the year resulting in take-up being double that of the same period last year.

This, combined with an increasing number of enquiries from manufacturers as the economy improves indicates that demand is greatly outstripping supply in the South Yorkshire area, the report said.

Managing director of St Paul’s Developments, David Newton, says: “The recent half-year logistics reports have confirmed that the logistics market is changing for occupiers and that the days of big incentives on built stock are a thing of the past. The drastic shortage of stock in South Yorkshire paves the way for a concerted return to design and build and we are confident that the 29 acres of ‘oven ready’ land we have with EZ status at Smithy Wood, is in prime position to accommodate the large occupiers.”

Smithy Wood is one of the region’s most acclaimed business and industrial parks and has attracted a host of high profile occupiers such as Kier, DPD, Medilink UK , Cutting and Wear and Konica Minolta since work began in 2005.

Twenty acres of the extensive 50 acre site has already been transformed by regeneration specialist St Paul’s Developments in a joint venture partnership with The Norfolk Estate, with over 165,000 sq ft of developed space in Phases 1 & 2.

The third 29 acre phase is able to accommodate 500,000 sq ft of bespoke opportunities.

Mr Newton said: “Occupiers are now considering bespoke design and build opportunities and will be trading a pick of existing buildings for the advantages of purpose built accommodation. Quality along with deliverability become key priorities. We have witnessed an upsurge in interest from occupiers who are considering this route, have seen the success of the earlier phases at Smithy Wood and know that this high quality can be replicated on the next phase which can accommodate a broad spectrum of operations from data centres to offices or large warehousing/industrial units.”

Rebecca Schofield, partner at the Sheffield office of Knight Frank – joint agent on Smithy Wood with Fowler Sandford – said: “The market is certainly moving into a landlord’s favour as a result of strengthening demand and falling supply. We are now seeing occupiers starting to seriously consider build to suit options and Smithy Wood, as strategically one of the best developments in the region, is well placed to capitalise on this. St Paul’s Developments’ track record in delivery for large occupiers and the added benefit of EZ status definitely makes the scheme one to watch.”