21. Februar 2012 
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Healthy activity for South Yorkshire industrial & logistics market
Continued interest from a high-profile retailers and Sheffield’s Enterprise Zone status are set to give South Yorkshire’s industrial and logistics market a boost in the first half of 2012, according to new research. Knight Frank’s Sheffield office says it anticipates healthy activity during the first part of this year. The Hurricane building in Doncaster is presently under offer to retailer Next, while manufacturers and metals recycling companies are also active in the market, with two further transactions of circa 70,000 sq ft likely to go through in the first half of 2012.
Data from Knight Frank’s new research publication Logic revealed a period of ‘subdued transactional activity’ in South Yorkshire in the second half of last year, although key transactions included ABS Industrial Resources securing a 83,700 sq ft industrial unit at Adwick Park in Manvers in the Dearne Valley and DHL taking 160,000 sq ft at Balby Car Bank in Doncaster on a short term basis.
Rebecca Schofield, partner with the Sheffield office of Knight Frank, said: “Prospective occupiers are favouring modern second-hand space due to the quality of existing fit-out. Consequently, landlords of new stock are having to compete by offering generous fit-out packages. Third-party logistics providers (3PLs) are also back in the market but typically can only commit to five years.„
“In the absence of new development, the supply of good quality small to medium-sized units is diminishing and buildings already fitted out with offices and lighting are proving most attractive. In terms of outlook for the region, the larger end of the market is expected to continue to generate very competitive terms, as supply of this type of stock remains elevated. However, incentives are expected to harden for good quality small to medium-sized units in the prime locations along the M1, as supply of this sort of product is tighter.“
“While large-scale speculative development is not expected to emerge in the short-term, a handful of local developers may undertake small unit schemes following recent land acquisitions at Shortwood Business Park, Barnsley and First Point, Doncaster. Developers may also opt to speculatively develop a single unit alongside a pre-let, as and when a bespoke design and build development moves forward.”
The designation of the Sheffield Region as an Enterprise Zone last summer is likely to have a positive impact on the market in 2012. Added Rebecca: “We expect the news to stimulate enquiries for the region from inward investors during the coming year.”
Data from Knight Frank’s new research publication Logic revealed a period of ‘subdued transactional activity’ in South Yorkshire in the second half of last year, although key transactions included ABS Industrial Resources securing a 83,700 sq ft industrial unit at Adwick Park in Manvers in the Dearne Valley and DHL taking 160,000 sq ft at Balby Car Bank in Doncaster on a short term basis.
Rebecca Schofield, partner with the Sheffield office of Knight Frank, said: “Prospective occupiers are favouring modern second-hand space due to the quality of existing fit-out. Consequently, landlords of new stock are having to compete by offering generous fit-out packages. Third-party logistics providers (3PLs) are also back in the market but typically can only commit to five years.„
“In the absence of new development, the supply of good quality small to medium-sized units is diminishing and buildings already fitted out with offices and lighting are proving most attractive. In terms of outlook for the region, the larger end of the market is expected to continue to generate very competitive terms, as supply of this type of stock remains elevated. However, incentives are expected to harden for good quality small to medium-sized units in the prime locations along the M1, as supply of this sort of product is tighter.“
“While large-scale speculative development is not expected to emerge in the short-term, a handful of local developers may undertake small unit schemes following recent land acquisitions at Shortwood Business Park, Barnsley and First Point, Doncaster. Developers may also opt to speculatively develop a single unit alongside a pre-let, as and when a bespoke design and build development moves forward.”
The designation of the Sheffield Region as an Enterprise Zone last summer is likely to have a positive impact on the market in 2012. Added Rebecca: “We expect the news to stimulate enquiries for the region from inward investors during the coming year.”
