Tenants in the driving seat when negotiating deals

Owen Holder, partner at property agent Knight Frank, believes there has never been a better time to rent large warehouses as tenants negotiate savings of up to 65 per cent compared with deals done two or three years ago.

Mr Holder said: "Occupiers of larger sheds are beginning to look in Yorkshire again, driven by the level of deals they can pick up on new buildings built speculatively during the 'boom' years.

"These deals can represent savings on properties of up to 65 per cent on deals being done two or three years ago. On longer-term leases, tenants can often negotiate two-to-three years rent free and a capital payment for a fit-out on top."

Opportunities to purchase are less readily available, but Mr Holder said there are cost-effective possibilities for occupiers able to finance a purchase free of bank involvement.

A recent RICS commercial market survey suggested that tenant demand is rising for industrial units. The take-up of the largest industrial units remains slow, but there is a steady stream of deals for smaller units.

According to research by BNP Paribas Real Estate last month, capital values in Yorkshire's industrial market are expected to grow this year, while rents are expected to continue to fall.