Member Article

Small/medium industrial unit supply ‘crunch’ in South Yorkshire

Demand is starting to outstrip supply in the good quality small to medium sized units market in South Yorkshire, according to new research by Knight Frank.

Data from Knight Frank’s research publication LOGIC for the first half (H1) of this year revealed continued steady demand for units below 30,000 sq ft.

Rebecca Schofield, partner with the Sheffield office of Knight Frank, said: “Steady demand for industrial units under 30,000 sq ft means that, consequently, we’ve witnessed a crunch with the supply of good quality stock in this size-band becoming limited, particularly in the prime locations adjacent to the M1 motorway.”

Standout transactions from H1 include NWS relocating to a 17,000 sq ft unit at Thorncliffe Distribution Centre after a deal brokered by Knight Frank on behalf of clients Geopost.

Global mining consumables manufacturer Bradken also moved to a refurbished 12,000 sq ft base at Dodds Close in Rotherham in another Knight Frank deal.

The report also noted the success of the Advanced Manufacturing Park (AMP) in strengthening South Yorkshire’s profile, with more advanced manufacturers opting to locate in the region.

Said Rebecca: “The AMP have plans for a small unit development called Re-volution, and, while asking rents will be a premium, the quality and location are likely to prove attractive.”

Highlighted deals for units in excess of 50,000 sq ft during H1 included Parcel Force taking the 151,215 sq ft Unit 1 at Rotherham’s Magna 34 Business Park in April and AE Davis Haulage’s move to a 55,000 sq ft base at Fall Bank Industrial Estate in Barnsley in June.

Added Rebecca: “Looking ahead, and aside from developments at the AMP, we expect speculative development to remain off the agenda in the short term, with activity largely driven by design and build deals.

“That said, a developer may be willing to build a small unit speculatively on a site where a design and build deal has been agreed. Speculative activity is likely to instead focus on smaller schemes, where landlords can be more confident of securing tenants on longer, leases.”

This was posted in Bdaily's Members' News section by Mark Lane .