TOP quality industrial space remains in short supply, according to a major report.
The latest UK Property Times Industrial market report from DTZ Research showed availability of grade A industrial space continued to fall in the last quarter of 2010.
And it concluded that – in most UK locations – falling levels of availability combined with a lack of speculative development was creating competition for prime space.
In Yorkshire, take-up in the final quarter totalled 390,000sq ft – making an annual total of 3m sq ft.
Non-food retailers were dominant throughout the year as the region was targeted for national distribution hubs. Yorkshire also benefited from inward migration as higher rents and a shortage of supply in the North West increased the attractiveness of the region.
The trend to consolidate distribution is expected to continue driving demand this year with a number of large deals currently in the pipeline.
Mike Baugh, director of DTZ’s industrial team in West Yorkshire, said: “The Yorkshire region, with its excellent infrastructure and labour supply, continues to be successful in attracting large scale distribution occupiers.
“With take-up of speculatively built grade A space continuing, and a lack of any new development, the window of opportunity for occupiers to secure significant incentives is closing.
“Consequently it is likely that we will see a return to design and build-led deals.”
Nationally, take-up during the fourth quarter was slightly down from the previous three months at 5.8m sq ft – with availability of prime space falling to 37m sq ft.
