South Yorkshire’s logistics and industrial market had an ‘encouraging’ first half and the forecast is looking promising for the rest of the year, according to research by property consultancy Knight Frank.
Almost 840,000 sq ft in units above 50,000 sq ft was taken up – nearly equal to the full total for 2011.
Knight Frank partner Rebecca Schofield said: “The results for the first half of the year have been encouraging. As recent pre-lets such as Home Décor at Woodhouse Link and Andrew Page at Markham Vale demonstrate, occupiers are now pursuing design and build to satisfy their requirements.
“However, design and build remains uncompetitive in the region as favourable terms are on offer on standing stock, particularly in premises of 150,000 sq ft plus.”
Most of the activity for the first half of 2012 involved both sales and lettings of second-hand buildings, with some local occupiers preferring to buy rather than rent.
Rebecca Schofield reckons buyers who secure the necessary funding are in a strong position and they can source their accommodation relatively cheaply in the current market.
She adds that the supply of good quality stock of up to 25,000 sq ft is diminishing steadily and, while there hasn’t been an improvement in headline rents, incentives are becoming less generous.
Rebecca Schofield predicts that the start of work on Rolls-Royce’s new Advanced Blade Casting Facility, on the Advanced Manufacturing Park will stimulate property market activity.
“There are also currently a number of buildings under offer from a broad range of sectors, including distribution, manufacturing and recycling, suggesting that the solid activity witnessed in this first half of the year is likely to be repeated in the second,” she adds.