The government’s proposed road improvement programme could unlock up to 26.9m sq ft of industrial and logistics development land.
Seven improvement projects could together unlock more than 600 acres of development land, according to Lambert Smith Hampton’s Roads to Riches report.
This equals a quarter of annual take-up in the sector, prompting potential rental growth of around 5%.
Chancellor George Osborne is expected to announce additional road investment schemes in his Autumn Statement on 3 December.
LSH has identified the following seven improvement projects as having the most acute impact on industrial:
• A5-M1 Link and Woodside Link, Dunstable
• South East Nottingham Corridor improvements
• A45 Development Link Road, Daventry
• A38 Peddimore Junction improvements, Birmingham
• A5 improvements, Nuneaton/Hinckley
• A14 Cambridge to Huntingdon improvement scheme
• A6 to Manchester Airport Relief Road
LSH industrial and logistics head Steve Williams said: “In a sector where time is critical to success and profit margins are wafer thin, there is a direct link between the provision of road infrastructure and demand for industrial premises, particularly distribution warehousing for retailers and third-party logistics providers.
“New roads, junctions and improvements to existing roads will shave vital minutes off journey times and open up areas for viable development on sites that might previously have been discounted for operational reasons.
“However, more needs to be done to tackle increased congestion and delays on the road network, and we look forward to the announcement of additional measures during next month’s Autumn Statement. In particular, we would like to see action taken to improve hotspots such as the A34 between Newbury and the M40.”
