News: CBRE see opportunities in the Yorkshire property sector
Diminishing supply levels combined with steady take-up figures in the Yorkshire industrial and logistic market paints a more positive picture for the year ahead according to property firm CBRE.
Toby Vernon, senior director of Industrial Agency at CBRE, said: "2006 and 2007 saw a major increase in the supply of new build, speculatively built, large scale logistics schemes. This coincided with a significant contraction in occupier demand as the recession bit and the Yorkshire region, like most across the UK, was faced with an over-supply of industrial stock.
"Throughout 2008 and 2009 the market was sluggish but demand has returned to form with a substantial amount of building take-up over the last two years. With no speculative development taking place during this time, supply levels began to diminish and we are now in a much stronger position with the market imbalance correcting itself."
CBRE's research into logistics buildings over 100,000 sq ft indicates that 2011 take-up in the Yorkshire region fell back in line with the UK-wide statistics. Coupled with a complete lack of speculative development, this means that current availability of existing buildings represents only 16 months of supply.
Recent logistics lettings in Yorkshire have been from large retailers such as Amazon and ASOS and with tenants looking for quality, CBRE expects good things for the existing stock and eventually a requirement for pre-let led development in core areas.
Vernon added: "Looking ahead to 2012, we expect that the steady levels of take-up will continue and that we will see an increase in demand from other UK regions where building supply is far more limited.
"We expect that the online retailers and major high street chains will continue to be the main drivers for logistics demand. As supply levels reduce further, rental levels will harden and the prospects for pre-let led development will begin to improve."
Recent deals involving CBRE in Rotherham include American engineering company, Thetford Ltd moving to Manvers and Home Décor's 110,000 sq ft pre-let at Woodhouse Link.
CBRE website
Toby Vernon, senior director of Industrial Agency at CBRE, said: "2006 and 2007 saw a major increase in the supply of new build, speculatively built, large scale logistics schemes. This coincided with a significant contraction in occupier demand as the recession bit and the Yorkshire region, like most across the UK, was faced with an over-supply of industrial stock.
"Throughout 2008 and 2009 the market was sluggish but demand has returned to form with a substantial amount of building take-up over the last two years. With no speculative development taking place during this time, supply levels began to diminish and we are now in a much stronger position with the market imbalance correcting itself."
CBRE's research into logistics buildings over 100,000 sq ft indicates that 2011 take-up in the Yorkshire region fell back in line with the UK-wide statistics. Coupled with a complete lack of speculative development, this means that current availability of existing buildings represents only 16 months of supply.
Recent logistics lettings in Yorkshire have been from large retailers such as Amazon and ASOS and with tenants looking for quality, CBRE expects good things for the existing stock and eventually a requirement for pre-let led development in core areas.
Vernon added: "Looking ahead to 2012, we expect that the steady levels of take-up will continue and that we will see an increase in demand from other UK regions where building supply is far more limited.
"We expect that the online retailers and major high street chains will continue to be the main drivers for logistics demand. As supply levels reduce further, rental levels will harden and the prospects for pre-let led development will begin to improve."
Recent deals involving CBRE in Rotherham include American engineering company, Thetford Ltd moving to Manvers and Home Décor's 110,000 sq ft pre-let at Woodhouse Link.
CBRE website
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