Wednesday, August 29, 2012

News: Knight Frank encouraged by Rotherham deals


South Yorkshire's logistics and industrial market saw an "encouraging" first half of the year – and the forecast is looking promising for the rest of 2012, according to research by commercial property experts, Knight Frank.

For units in excess of 50,000 sq ft, the market saw take-up of 835,200 sq ft in from January to June - almost on a par with the full year total for 2011.

Key transactions included Next taking 263,000 sq ft in Doncaster to accompany their massive Manvers operation and Home Décor taking 110,000 sq ft at Woodhouse Link in Rotherham.

Rebecca Schofield, partner at Knight Frank, said: "The results for the first half of the year have been encouraging. As recent pre-lets such as Home Décor at Woodhouse Link demonstrate, occupiers are now pursuing design and build to satisfy their requirements.

"In broad terms, however, design and build remains uncompetitive in the region as favourable terms are on offer on standing stock, particularly in premises of 150,000 sq ft plus."

Knight Frank also welcomed the news that world-renowned engineers, Rolls-Royce has begun the construction of a state-of-the-art manufacturing facility on the Advanced Manufacturing Park in Rotherham.

Rebecca added: "As well as creating 150 jobs on the site, the development is also likely to start to generate activity in the local supply chains and we can expect this to manifest itself in property market activity.

"Rolls Royce's commitment to the area is very positive as it demonstrates the region's growing capability as a centre for advanced manufacturing.

"Over the next three to five years, it is hoped that the Enterprise Zone will help to capitalise on this growing strength by securing a mix of international manufacturers through incentives such as business rates relief and enhanced capital allowances.

"There are also currently a number of buildings under offer from a broad range of sectors, including distribution, manufacturing and recycling, suggesting that the solid activity witnessed in this first half of the year is likely to be repeated in the second."

Prime headline rents in Rotherham are expected to remain the same at £4.75 per sq ft for lettings of up to 50,000 sq ft and £4.50 for lettings above 50,000 sq ft.

Knight Frank website

Images: Knight Frank


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