THE amount of industrial space acquired across Yorkshire during 2010 reached a record high, according to latest figures.
The National Industrial and Distribution Report published by property consultancy Lambert Smith Hampton showed the take-up of space rose by 30.5% compared with 2009 to reach a record 10.5m sq ft.
Rob Whatmuff, regional head of industrial and logistics agency for LSH in Yorkshire said: “The last 12 months has seen an increased level of take-up for existing stock, albeit on favourable terms for the occupier.
“This take-up has seen a significant reduction on standing stock.”
The research found that take-up in the distribution sector soared – with 10 transactions undertaken on buildings over 175,000sq ft.
Activity came from the retail sector with supermarkets, department stores, discount and internet retailers responsible for 79% of take-up.
Despite demand reaching a record high, availability rose to 44.4m sq ft, an increase of 14.5% on 2009.
However, much of the stock returning to the market is obsolete, lower quality and unwanted stock, said Mr Whatmuff.
Focusing on rental values, he said: “Landlords have become more accommodating in retaining existing tenants and have been prepared to offer strongly incentivised deals on lease renewals.
“This has led to a downward spiral in rental levels.
“However, the growing shortage of good quality accommodation combined with a continuation of 2010 take-up figures will lead to increased rental levels in the future, resulting in a shift in the balance of power to landlords.”
Said Mr Whatmuff: “There are several key development sites in West Yorkshire which could facilitate the anticipated demand in the ‘big shed’ distribution market over coming years, as well as the immediate demand for small to medium-sized new build accommodation
“While in South Yorkshire, the larger distribution market requires further take-up, medium-sized units in the primary locations continue to generate demand and are of limited supply.”