Thursday, September 24, 2015

News: South Yorkshire's shortage of quality industrial premises

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A report by commercial property specialists, Knight Frank, highlights a severe shortage of premises in South Yorkshire.

The Logistics and Industrial Commentary (LOGIC) report for the first half of 2015 points to the fact that there is only 500,000 sq ft of good quality units over 100,000 sq ft available in South Yorkshire, with 380,000 sq ft under offer.

The demand for larger units is coming from B8 occupiers in storage and distribution and Knight Frank expect this trend to continue whilst the market adapts to demand from on-line retailing and occupiers assess their requirements.

With regard to small to medium sized units, the report states that there continues to be a severe shortage of premises of any quality, adding that speculative development continues to often be unviable from a financial perspective.

The report also picks out Bluetree's deal that has seen it move to Brookfields Park in Manvers. The 86,900 sq ft site will be the new headquarters and allow the business to increase production capacity and offer a wider range of products and services.

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Rebecca Schofield, partner at the Sheffield office of Knight Frank, said: "The depletion of existing stocks of industrial units across South Yorkshire has created a bottleneck, with many occupier requirements unlikely to be satisfied by existing accommodation. Small to medium-sized units of good quality are particularly under severe shortage, which is compounded by construction costs as a barrier to new development.

"Where we are seeing speculative developments at the smaller end of the scale, it is being driven by local authority support or grant subsidies.

"Those new developments that are coming to fruition are being well received by the market."

One developer that is continuing with speculative development is Rotherham's E V Waddington Ltd. A specialist in brownfield development, plans have recently been submitted for the next phase at its successful Aldwarke Wharf development in Rotherham. The 45,000 sq ft Building 10, which can be subdivided, is proposed for warehouse / light industrial use. Occupiers at the Waddington Way site include Candlelight Products, Philford Design Engineers and SP Containers.

In Dinnington, Waddington's acquired a parcel of land from at the former colliery site from the Homes & Communities Agency (HCA) in 2013 and is bringing forward further industrial units.

Knight Frank website

Images: Knight Frank

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