31. Juli 2012 Print
Industrial take-up rebounded to 8.1m sq ft in Q2 2012
Only one letting over 50,000 sq ft completed in Scotland in Q2. Steel Engineering expanded into 70,000 sq ft of grade B space at Westway, Renfrew. This leaves Q2 lettings at its lowest level since 2009 and as a result availability remains largely unchanged. The region has however been boosted by news that Global Energy Group plan to develop a 238 acre site at the Nigg Yard in Easter Ross.
Take-up in the West Midlands in Q2 fell marginally to 680,000 sq ft, 30% below the average. The largest letting was NT International taking 130,000 sq ft premises in West Bromwich for Cash & Carry use. Grade A availability stands at 3.1m sq ft across 19 buildings. The outlook for take-up in Q3 is strong with a number of parties interested in the The Hub and other Birmingham buildings of 100,000 sq ft and above.
In the North East take-up reached 1m sq ft, its highest level since 2009 and over three times the average. The largest letting was a 420,000 sq ft pre-let at Turbine Business Park to Vantec Europe to service their Nissan logistics contract, one of a number of lettings driven by the automotive industry. The region now boasts the lowest amount of available grade A space at 580,000 sq ft.
Q2 take-up was strong in the East Midlands, reaching 1.7m sq ft, 50% higher than the average and double the Q1 level. The two most significant deals were to Steinhoff which took 425,000 sq ft at Magna Park and Assured Logistics Solutions which took 215,000 sq ft at Max Park, Corby. As a result grade A availability fell further and now stands at 1.7m sq ft across eight buildings and many occupiers are now looking at built-to-suit schemes.
Take-up in the South West fell to 400,000 sq ft in Q2 across three grade B and C deals. Grade A availability remains unchanged at 940,000 sq ft across three buildings. The outlook for Q3 is mixed; Home Bargains has identified a preferred option for their 400,000 sq ft requirement however Supergroup has put their 450,000 sq ft requirement on hold. There are however a number of active requirements in the market.
In Yorkshire & Humberside, Q2 take-up was disappointing reaching 320,000 sq ft across four deals. The largest letting involved DFS taking 135,000 sq ft at Latitude 135, Castleford. Grade A availability stands at 3.6m sq ft, the second highest level in the UK although a large proportion is located in South Yorkshire. The outlook for take-up in Q3 is promising with DHL returning 750,000 sq ft back to the market at Nimbus Park, which is reportedly under offer to The Range.
In Wales there were no lettings above 50,000 sq ft in Q2. While interest in smaller units is robust, demand for larger units is restricted by a lack of suitable availability which currently stands at 750,000 sq ft for prime space. Recent news suggests that space could be returned to the market soon as Alberto Culver has announced it is to close its South Wales production plant resulting in 300,000 sq ft of production and warehouse space being returned to the market.