Major deals paving the way for market recovery

YORKSHIRE'S industrial market is seeing signs of recovery after take-up of large modern warehouses reached 1.6m sq ft in the third quarter of 2010.
By The Newsroom
Published 28th Oct 2010, 11:45 BST
Updated 28th Oct 2010, 11:45 BST

Research by CB Richard Ellis (CBRE) found that take-up of new-build logistics space of more than 100,000 sq ft in the last three months was more than double the 594,000sq ft which was taken up in the same period of 2009.

Deals included Asda taking 263,806 sq ft at Hurricane in Doncaster, Poundworld's 204,250 sq ft lease at Axis 62 in Normanton, and Scots Miracle Gro's 163,000sq ft lease at Quattro in Doncaster.

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CBRE said it reflected improving sentiment in the market and may now pave the way for a shift to pre-let activity across the region in 2011.

Dave Cato, associate director of Industrial Agency at CBRE, said: "With circa 5m sq ft of new build/modern 100,000 sq ft plus industrial stock available across Yorkshire at sites such as SIRFT and Blade in Sheffield, Thornton Road in Bradford and Sherburn Distribution Park in Leeds, the region still has plentiful supply.

"However, if the activity levels we have witnessed in Q3 continue with occupiers taking advantage of strong incentives, typically 2-3 years rent-free on a 10-year lease, the supply will continue to reduce and pre-let opportunities may well emerge moving forward."

Related topics:YorkshireDoncasterNormanton