The supply of grade-A industrial and logistics properties of more than 100,000 sq ft is extremely constrained, with less than 10 months’ supply currently available throughout the UK, according to research from Colliers International.
Two-thirds of the UK’s big sheds are occupied by the retail and food sector (35%) and logistics and distribution sector (29%), with the largest occupiers taking as much as 995,957 sq ft.
The North East, South West, Golden Triangle and Wales currently have no grade-A supply of big sheds, with Scotland, West Midlands, East of England and London all having less than two months until they too have no availability.
Len Rosso, Colliers International’s head of industrial and logistics, says: “Over the past five years we have seen very little new development in the big shed arena and most of the deals have been for secondary stock. While speculative builds and prelets are returning to the market, most occupiers’ requirements in the multinational food and retail sectors are not being adequately met. What we are seeing instead is existing stock being retrofitted and adapted to satisfy operational needs.
“However, with low interest rates and a growing economy, we can expect to see more development throughout 2015 and into next year. In particular, we especially need more big sheds delivered in London and the South West, where availability is in limited supply and take-up has been aggressive between the end of last year and the end of the first quarter of this year.”
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OCCUPIER
SIZE SQ FT
ADDRESS
Amazon
995,957
Daventry, Northamptonshire
Euro Car Parts
788,000
Tamworth, Staffordshire
Dunelm Group
526,426
Stoke On Trent , Staffordshire
DHL Express
518,620
Skelmersdale, West Lancashire
Wiggle
322,954
Wolverhampton, West Midlands
Jaguar Land Rover
312,500
Sutton Coldfield, Birmingham, West Midlands
DHL Express
250,669
Nottingham, East Midlands
Jaguar Land Rover
226,540
Coventry, Warwickshire
Doosan Babcock
216,205
Renfrew, Scotland
Dalepak
201,085
Northampton, East Midlands
The supply of grade-A industrial and logistics properties of more than 100,000 sq ft is extremely constrained, with less than 10 months’ supply currently available throughout the UK, according to research from Colliers International.
Two-thirds of the UK’s big sheds are occupied by the retail and food sector (35%) and logistics and distribution sector (29%), with the largest occupiers taking as much as 995,957 sq ft.
The North East, South West, Golden Triangle and Wales currently have no grade-A supply of big sheds, with Scotland, West Midlands, East of England and London all having less than two months until they too have no availability.
Len Rosso, Colliers International’s head of industrial and logistics, says: “Over the past five years we have seen very little new development in the big shed arena and most of the deals have been for secondary stock. While speculative builds and prelets are returning to the market, most occupiers’ requirements in the multinational food and retail sectors are not being adequately met. What we are seeing instead is existing stock being retrofitted and adapted to satisfy operational needs.
“However, with low interest rates and a growing economy, we can expect to see more development throughout 2015 and into next year. In particular, we especially need more big sheds delivered in London and the South West, where availability is in limited supply and take-up has been aggressive between the end of last year and the end of the first quarter of this year.”
[caption id="attachment_820108" align="alignleft" width="570"] Click for larger view[/caption]
OCCUPIER
SIZE SQ FT
ADDRESS
Amazon
995,957
Daventry, Northamptonshire
Euro Car Parts
788,000
Tamworth, Staffordshire
Dunelm Group
526,426
Stoke On Trent , Staffordshire
DHL Express
518,620
Skelmersdale, West Lancashire
Wiggle
322,954
Wolverhampton, West Midlands
Jaguar Land Rover
312,500
Sutton Coldfield, Birmingham, West Midlands
DHL Express
250,669
Nottingham, East Midlands
Jaguar Land Rover
226,540
Coventry, Warwickshire
Doosan Babcock
216,205
Renfrew, Scotland
Dalepak
201,085
Northampton, East Midlands
