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 the latest research by property consultants, King Sturge.
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 square metres, in the same period to 1.186m sq metres.
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 metres – to 631,305 sq metres.
Richard Harris, a partner in King Surge's Industrial Agency Team, 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 completed by King Sturge include a transaction related to 300,000 sq ft at J34, Rotherham, which is owned by fund manager Threadneedle Property Investments, from London. It has been let to a steel contract manufacturing business,
In another deal, budget retailer, Poundworld Retail, leased 215,000 sq ft at Axis 62, in Foxbridge Way, Normanton, which is owned by AXA Real Estate Investment Managers.
Mr Harris added: "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 sq metres to 32,000 sq metres 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 sq metres soon."
The Leeds office of King Sturge is one of the region's biggest independent firms of chartered surveyors and property consultants.