A lack of industrial space holding back the market

The study, by Lambert Smith Hampton (LSH), also concluded that the total take-up of industrial space reached its lowest level since 2007, a sign of our troubled economic times.

Robert Whatmuff, of LSH, said: “The lack of stock is holding back the market and occupiers of small and medium sized units are struggling to find any suitable space to accommodate their future plans. Occupiers now have very limited options, with no speculative development occurring over the last few years and the ‘flight to prime’ mentality in terms of recent occupier requirements.

“This has left us with less than one month’s supply of small to medium grade A accommodation. In the larger size ranges, this is less of an issue, as there remains a strong supply of grade A units over 100,000 sq ft, particularly in South Yorkshire. We have witnessed an increase in design and build from those occupiers with more bespoke requirements however, for the smaller occupier, this is generally not an option that is palatable or deliverable.”

According to LSH, the take-up of grade A industrial and logistics space across Yorkshire rose to 2.3m sq ft in 2012, which was almost double the amount acquired in 2011.