News: Occupier activity signals returning confidence in the commercial property market
Capital values in the Yorkshire and Humber industrial property market increased by 2.5 per cent in the first half of this year, according to latest research by property consultants, King Sturge.
The increase created an annual rate of 6.5 per cent during the 12 months to the end of June although rental values fell by 1.9 per cent in the same period and by five per cent over the previous 12 months, says the research by King Sturge's Leeds-based Industrial Agency Team.
During the first half of the year available industrial floorspace in Yorkshire rose by 0.3 per cent - a total of 8,924 sq m - to reach 2,882 sq m at the end of June 2010.
Space available in large industrial buildings - those above 10,000 square metres which represent 41.2 per cent of the region's supply - rose by 3.7 per cent, a total of 41,889 sq m, in the same period to 1.186 sq m.
Meanwhile availability in new buildings, which accounts for 21.9 per cent of the region's total supply, the largest percentage across Britain, fell by 9.5 per cent - 66,336 sq m - to 631,305 sq m.
Speculative development under construction has fallen with Yorkshire and Humber representing only four per cent of all such development across Britain. At the end of July there was only 3,746 sq m being built in four schemes - a fall of 28 per cent on January. The largest development of 2,388 sq m is due to complete this month.
A partner in King Surge's Industrial Agency Team, Richard Harris, said: "One sign of returning confidence is an increase in occupier activity since the start of the year resulting in several recent deals, particularly on the larger available units."
Recent deals by King Sturge include almost 28,000 sq m at J34, Rotherham, owned by fund manager Threadneedle Property Investments, London, being let to award-winning steel contract manufacturing business, MTL Group.
Richard Harris adds: "Landlords are keen to fill voids and are prepared to offer significant incentive packages or negotiate short-term deals until the market improves.
"In spite of this, a substantial supply of big sheds in the 13,000 m² to 32,000 m² remain in South Yorkshire. Development of any kind is rare, and with very little speculative development, we are likely to see a shortage of quality stock under 10,000 m² soon."
The Leeds office of King Sturge is one of the region's largest independent firms of chartered surveyors and property consultants with 70 staff providing property agency and investment services throughout Northern England and North Derbyshire.
King Sturge website
The increase created an annual rate of 6.5 per cent during the 12 months to the end of June although rental values fell by 1.9 per cent in the same period and by five per cent over the previous 12 months, says the research by King Sturge's Leeds-based Industrial Agency Team.
During the first half of the year available industrial floorspace in Yorkshire rose by 0.3 per cent - a total of 8,924 sq m - to reach 2,882 sq m at the end of June 2010.
Space available in large industrial buildings - those above 10,000 square metres which represent 41.2 per cent of the region's supply - rose by 3.7 per cent, a total of 41,889 sq m, in the same period to 1.186 sq m.
Meanwhile availability in new buildings, which accounts for 21.9 per cent of the region's total supply, the largest percentage across Britain, fell by 9.5 per cent - 66,336 sq m - to 631,305 sq m.
Speculative development under construction has fallen with Yorkshire and Humber representing only four per cent of all such development across Britain. At the end of July there was only 3,746 sq m being built in four schemes - a fall of 28 per cent on January. The largest development of 2,388 sq m is due to complete this month.
A partner in King Surge's Industrial Agency Team, Richard Harris, said: "One sign of returning confidence is an increase in occupier activity since the start of the year resulting in several recent deals, particularly on the larger available units."
Recent deals by King Sturge include almost 28,000 sq m at J34, Rotherham, owned by fund manager Threadneedle Property Investments, London, being let to award-winning steel contract manufacturing business, MTL Group.
Richard Harris adds: "Landlords are keen to fill voids and are prepared to offer significant incentive packages or negotiate short-term deals until the market improves.
"In spite of this, a substantial supply of big sheds in the 13,000 m² to 32,000 m² remain in South Yorkshire. Development of any kind is rare, and with very little speculative development, we are likely to see a shortage of quality stock under 10,000 m² soon."
The Leeds office of King Sturge is one of the region's largest independent firms of chartered surveyors and property consultants with 70 staff providing property agency and investment services throughout Northern England and North Derbyshire.
King Sturge website
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