Take up on properties

Modern development: Artist's impression of the third phase of the SIRFT development
Modern development: Artist's impression of the third phase of the SIRFT development
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The take up of industrial property in Yorkshire shot up during the first six months of 2012, compared with the same period last year, according to CBRE.

The property consultants say take up increased by 88 per cent and even though the amount of space has now fallen to 3.97 million sq ft almost two-thirds of that is new property and Yorkshire still has the highest proportion of available space in the country.

Yorkshire is now one of the few parts of the UK with a sufficient choice of good quality buildings for occupiers who are finding it hard to find space in neighbouring regions and is in a strong position to capitalise on recovering occupier confidence, CBRE adds.

CBRE’s senior director of industrial agency Toby Vernon said: “There were some encouraging signs of a resurgence in occupier interest at the start of the year, with requirements from some large retail names.

“However, as economic uncertainties grew and concerns about the strength of the Eurozone returned, occupiers once again retreated.
“Interest has emerged from high street and online retailers, particularly discounters who continue to expand. Nevertheless the region, particularly South and West Yorkshire, has the potential to benefit once confidence returns and since the start of the summer there has been an upturn of interest.

“The availability of stock within this region has created an opportunity for occupiers and the larger schemes in particular are now unique across the UK. Yorkshire has three schemes that could accommodate a requirement of over 400,000 sq ft.”

Mr Vernon says two of the big schemes are in Sheffield – the 647,000 sq ft SIRFT development on Europa Way, and the 412,500 sq ft Logistics Property Partnership Sheffield development on Shepcote Lane.

Investment volumes have rebounded, says CBRE, and have been significantly boosted by the £36.2 million sale of B&Q’s 800,000 sq ft logistics facility at Redhouse Interchange in Doncaster and the £16.8 million sale to NFU of a new, 264,000 sq ft warehouse on the same site, which had been recently let to Next.