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A look at the Big Shed Market by Franco Capella of Burbage Realty

wantspacegotspace.co.uk - A look at the Big Shed MarketThe demand and take up for big sheds across the East Midlands/East Anglia has continued at a steady and sustained pace through the first half of 2013, with the only limiting factor to returning confidence in the big shed sector likely to be lack of available existing stock and in some prime areas such as Northampton, a lack of development sites.  There are now few good quality buildings in excess of 100,000 sq ft and a handful in excess of 200,000 sq ft available across the East Midlands.

In the East at Peterborough the first deals at Roxhill’s 240 acre Peterborough Gateway scheme have been announced to Yearsley Group and Geopost. The new dual carriageway is constructed and the site is fully open with new buildings capable of delivery within eight months.  Strong interest in the scheme is reported.

At Corby, demand has focussed on existing warehouses with recent deals at Max Park to Norbert Dentressangle and Bibby Distribution, both taking units of 212,500 sq ft. Moving south to A1/M1 Link at Thrapston DSV Logistics has taken a new turnkey freehold warehouse of 100,000 sq ft. The building is nearing completion and is immediately adjacent to DSV’s existing facility on the park.  The only remaining new building in Corby is LPP’s 500,000 sq ft building on Mitchell Road which is available on a leasehold and freehold basis.

In Northampton there are a few buildings from 100,000 sq ft up to 200,000 sq ft on the market, the most recent addition being 190,000 sq ft on Swan Valley. The former Tesco distribution centre on Brackmills is under offer to Decathlon and also on Brackmills, Roxhill has prelet 240,000 sq ft with expansion to Dachser at its Brackmills Point scheme.  Mercury 111 has just been refurbished and is immediately available at a rent of £4.95 psf.

In the largest pre-let deal of the year so far, Prologis has signed Sainsbury’s at DIRFT for a new distribution centre of 980,000 sq ft which leaves one remaining plot capable of accommodating up to 420,000 sq ft with rail connection.  A planning application for Phase III has been submitted.

Moving north to Magna Park, Lutterworth a modern warehouse of 133,000 sq ft is coming back to the market. The unit will be fully refurbished and available on a new lease at £5.75 per sq ft. Unit 3210 benefits from loading yards running along two elevations of the building so there is potential to provide a cross-dock facility.  At Bardon (M1 J27), Waitrose fully fitted cross dock 255,000 sq ft building is also coming to the market.

Langley 255 is available at Junction 26 of the M1 and is one of the last remaining speculative distribution centres in excess of 200,000 sq ft. Further North Tesco will be vacating its warehouse at Barlborough, which has seen 500,000 sq ft of space coming back to the market.

Other schemes in the area such as Markham Vale, immediately adjacent to J29a of the M1, provide competitively priced ‘oven ready’ sites where buildings can be delivered in 32 weeks. Markham Vale benefits from Enterprise Zone status and offers very competitive terms with quoting rents from just £2.95 per sq ft for a new D&B warehouse from 585,000-910,000 sq ft.

Confidence within the industrial/warehouse sector is gaining momentum, demonstrated by the take-up of both existing and design and build space. The market is returning to a normal cycle and while there are fewer enquiries across the market there are a number of serious requirements where further deals will be concluded. The outlook for the big shed sector is positive.

Posted by The Editor (wantspacegotspace) on 17th May 2013 (updated 31/05/2013)

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