Property consultants CBRE are predicting Yorkshire could face a shortage of distribution and logistics space within 18 months.
CBRE’s Mike Baugh says eight million square foot of new industrial units of more than 100,000 sq ft have been built in the region over the last decade – 5.7 million of which was in South Yorkshire.
Little has been built since 2006 and only 1.6 million square foot is now available.
CBRE says its research shows a number of deals completed in the second half of 2013 have played a major part in reducing supply. Deals have included Marks & Spencer’s decision to take 626,000 sq ft in two buildings at SIRFT in Sheffield and ASOS’s acquisition of an additional 140,000 sq ft for its operations in Barnsley.
“Availability of ‘oven-ready’ sites is becoming increasingly limited now,” says Mr Baugh.
According to Mr Baugh just two suitable distribution opportunites are still available in Yorkshire.
One is Logistics Property Partnership’s 413,000 sq ft development off Shepcote Lane, close to Junction 34 of the M1 in Sheffield, while the other is at Sherburn-in-Elmet, east of Leeds. “There is healthy interest in distribution space across Yorkshire, particularly from third-party logistics providers,” says Mr Baugh.
CBRE says the availability of sites may soon become an issue depending on how quickly the remaining space is absorbed.
It highlights a number of prime industrial sites sitting along the proposed HS2 rail route and predicts a clear move to design and build, arguing that it is unlikely that there will be a return to speculative development of units in excess of 100,000 sq ft in the short term.