West Yorkshire’s industrial property market is set to continue performing well during the first half of 2018, according to a report.
The latest Logic Report from property agent Knight Frank said that more than 700,000sq ft of industrial/warehouse space was transacted across West Yorkshire during the second half of 2017 involving units above 50,000 sq ft.
Combined with take-up in the first half of last year, some 1.4m sq ft of space was transacted – in line with 2016’s figures.
The report said availability remained stable as several buildings came onto the market to offset the strong take-up seen earlier in the year.
However, high-quality existing and new build industrial stock in the mid-size range of 30,000sq ft to 75,000sq ft remained in short supply and there was limited speculative development during 2017.
Iain McPhail, partner with Knight Frank’s industrial property team in West Yorkshire, said: “The market rallied during the last three months of 2017. Consequently, we expect to see improved take-up figures in the first six months of this year..
But he said there was a dearth of “big sheds” in West Yorkshire above 200,000sq ft – with the exception of the 215,000sq ft Axis 62 unit in Normanton and The Copperworks on Haigh Park Road in Leeds, which is currently under refurbishment and extends to more than 300,000sq ft.
Said Mr McPahil: “The lack of stock in this size range has resulted in an increase in activity in the design and build market. Notably the largest deal of the year so far in West Yorkshire involved technology distributor Premier Farnell taking a bespoke 361,000sq ft unit at Muse
Development’s Logic Leeds scheme in the Leeds City Region Enterprise zone.
“There has been a marked rise in enquiries and occupier activity since the turn of the year and with several larger buildings already under offer in the region, it is expected to be another good year for the industrial market.”