News: Strong activity but prime rental falls in Rotherham
The commercial property market of the industrial and distribution sector in Rotherham saw strong activity in 2009 but a fall in prime rental values, according to a recent report by national commercial property consultancy, Lambert Smith Hampton (LSH).
LSH's National Industrial and Distribution Report 2010 showed that South Yorkshire recorded an increase in take-up levels during 2009 and that market activity increased in Yorkshire & The Humber, with 8.1m sq ft of transactions, an increase of 7.0%
The report highlights that the well-located estates in Rotherham performed well throughout 2009, with the sub 50,000 sq ft units driving the market forward. Occupiers have been drawn to the primary locations and, in particular, motorway junctions, with similar headline rental figures to the previous year being achieved.
Despite strong activity and rents being paid, prime rental values in the sector fell by 13.6% in Rotherham in 2009.
The report also states that South Yorkshire has a significant oversupply of larger distribution units due to the scale of speculative development which has taken place in previous years. Conversely, in other areas of the UK there are acute shortages in prime industrial stock.
Michael Alderton, Head of LSH's Industrial and Logistics Division, said: "Our findings are certainly encouraging and we are starting to see real improvements in the industrial sector, however, there is still a huge oversupply of second-hand space in the market as inefficient businesses continue to suffer."
LSH worked on the largest pre-let to be completed in South Yorkshire in 2009 when Pegler agreed terms for a total of 102,000 sq ft of prime industrial space at Brookfield's Park in Manvers, Rotherham.
The £7m distribution facility for the leading manufacturer of fittings, taps and valves is nearing completion.
LSH website
Rotherham
LSH's National Industrial and Distribution Report 2010 showed that South Yorkshire recorded an increase in take-up levels during 2009 and that market activity increased in Yorkshire & The Humber, with 8.1m sq ft of transactions, an increase of 7.0%
The report highlights that the well-located estates in Rotherham performed well throughout 2009, with the sub 50,000 sq ft units driving the market forward. Occupiers have been drawn to the primary locations and, in particular, motorway junctions, with similar headline rental figures to the previous year being achieved.
Despite strong activity and rents being paid, prime rental values in the sector fell by 13.6% in Rotherham in 2009.
The report also states that South Yorkshire has a significant oversupply of larger distribution units due to the scale of speculative development which has taken place in previous years. Conversely, in other areas of the UK there are acute shortages in prime industrial stock.
Michael Alderton, Head of LSH's Industrial and Logistics Division, said: "Our findings are certainly encouraging and we are starting to see real improvements in the industrial sector, however, there is still a huge oversupply of second-hand space in the market as inefficient businesses continue to suffer."
LSH worked on the largest pre-let to be completed in South Yorkshire in 2009 when Pegler agreed terms for a total of 102,000 sq ft of prime industrial space at Brookfield's Park in Manvers, Rotherham.
The £7m distribution facility for the leading manufacturer of fittings, taps and valves is nearing completion.
LSH website
Rotherham
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