YORKSHIRE is over-supplied with new logistics property, which means it’s a good place for companies who are looking to grow, according to new research.
The study by BNP Paribas Real Estate concluded that the supply of new logistics property is continuing to fall across the UK, as new development remains stifled.
Despite an encouraging flurry of recent deals on large distribution space, the research finds that Yorkshire and The Humber still has the highest proportion of new property available within the core UK regions.
According to BNP Paribas, stock has decreased at a national level for the third quarter in a row, with availability at its lowest level since 2008, at 21.5m sq ft.
Yorkshire and The Humber accounts for the highest proportion of industrial and logistics supply within the UK.
The region has 29.2m sq ft of property, both new build and second hand, on the market, or 21 per cent of all available stock.
The region also has the highest amount of new stock, with 26 per cent of the total market.
Despite this, the second half of 2012 has seen “promising levels of activity”, including The Range taking 750,431 sq ft at Nimbus Park, in Thorne.
Elbee has taken a 15-year lease on 205,000 sq ft at Nexus 36, Barnsley and Galpharm Pharmaceuticals has taken 155,000 sq ft at Elmhirst Park, Barnsley.
Next has also taken a 260,000 sq ft distribution centre at Redhouse Interchange in Doncaster.
Guy Cooke, the head of agency within BNP Paribas Real Estate’s Sheffield office, said yesterday: “The high vacancy rate in our region creates an opportunity for companies to locate here without taking on the relatively high costs associated with taking design and build space, which is often the only option in other parts of the country.
“Looking ahead, we expect this trend to continue and this sector to remain robust in 2013.”