Following announcements from the likes of McLaren and Boeing, enquiries from manufacturing occupiers looking at the Sheffield-Rotherham Advanced Manufacturing Innovation District (AMID) have increased, leading property agents, Knight Frank, has confirmed.
The firm's LOGIC report identifies regional level commentary on occupier and investment market trends in UK the industrial and logistics sector. For South Yorkshire in the first half of 2017, the report shows that the success of the Advanced Manufacturing Park (AMP) in Rotherham is raising further interest from potential occupiers.
Last week it was announced that Harworth Group, the owner and developer of the AMP, had signed a 20 year lease with supercar manufacturer, McLaren for its new £50m facility. The 75,000 sq ft McLaren Composites Technology Centre (MCTC) will enable the development and manufacture of the Monocell and Monocage carbon fibre chassis. The centre is set to create more than 200 jobs.
It was also announced that it had signed a 15-year lease with an unnamed advanced manufacturer for a new 11,044 sq ft unit at the AMP.
Over the Parkway, US aerospace giant, Boeing, has secured planning permission for a 66,000 sq ft facility alongside the University of Sheffield's Factory 2050. The £20m production facility will enable Boeing to bring the manufacture of key high-tech actuation components and systems used in the Next-Generation 737, 737 MAX and 777 aircraft in-house.
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The report from Knight Frank highlights that the region is performing 27% ahead of the five year average with take-up being driven by a variety of sectors. Take-up is also 63% above the level in the same period last year.
Tom Swallow, senior surveyor at Knight Frank, said: "While third party logistics continues to dominate demand for large distribution units, enquiries from manufacturing occupiers across the Advanced Manufacturing District have increased, driven by the success of the Advanced Manufacturing Park, which is attracting inward investment to the region."
The lack of stock has seen a return to speculative development, including Harworth's R-evolution development on the AMP. Local developer, E V Waddington Ltd has also seen continued success at its Aldwarke development in Rotherham and has recently had plans approved for 57,000 sq ft of industrial space on a remaining 1.15 hectare parcel of land at nearby Northfields, close to Parkgate.
Looking ahead, Knight Frank expects that rents will continue to grow with more speculative development being delivered across the region as occupiers demand higher quality stock. Although small unit schemes are less viable more are being delivered with the assistance of grant support - such as at Vantage Park Phase II - another Waddington development.
The agents added that it expects to see increased development of large industrial units over 50,000 sq ft as the supply of stock diminishes and as enquiry levels increase following redevelopment of sites for higher value uses.
Yet more overpriced lease units - we need more mid size freehold in the borough. As bigger companies gobble up land we are forced to move out of the borough into Sheffield and further afield.
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Yet more overpriced lease units - we need more mid size freehold in the borough. As bigger companies gobble up land we are forced to move out of the borough into Sheffield and further afield.
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