Yorkshire and the Humber is stealing a march over other regions when it comes to supplying new property for the logistics industry.
According to a study by property consultant BNP Paribas Real Estate, Yorkshire and the Humber still has the highest proportion of new property available within core regions, even though the supply of new logistics premises is continuing to decline across the UK and new development remains stifled.
The property consultants believe the region has five years’ worth of new property by historic measures and says supply in other core regions is much lower and, nationwide, availability is at its lowest since 2008.
Guy Cooke, head of agency at BNP Paribas Real Estate’s Sheffield office, said: “The high vacancy rate in our region creates an opportunity for companies to locate here without taking on the relatively high costs associated with taking design and build space, which is often the only option in other parts of the country.
“Looking ahead, we expect this trend to continue and this sector to remain robust in 2013.”
BNP Paribas says Yorkshire and the Humber has a fifth of the total available stock in the UK and more than a quarter of the new stock.
That is despite activity in the second half of 2012, which saw:
The Range take 750,431 sq ft at Nimbus Park, Thorne, on a 20-year lease at a rent reported to be £4.00 per sq ft.
Elbee take a 15-year lease on 205,000 sq ft at Nexus 36, Barnsley.
Galpharm Pharmaceuticals take 155,000 sq ft at Elmhirst Park, Barnsley.
Next take a 260,000 sq ft distribution centre at Redhouse Interchange in Doncaster.