Despite the broader economic and political uncertainty at a macro level and a slowdown in other sectors, Brown & Co's Industrial agents are experiencing continued demand for new build speculative industrial development.
There has been a surge in the supply and construction of “super sheds” for B8 distribution warehousing that reflects the main service consumer demand for internet shopping and just-in-time delivery. With very little new build since the 2008 Crash, there is pent up demand in much of the country for smaller to medium-sized industrial and trade counter units. This pent up demand has been recognised by developers, and with a general improvement in rent levels and values over recent years, some now have sufficient confidence to herald a return to speculative development.
A good example is at Arrow Park, Brackley situated mid-way between Oxford and Northampton on the A43 dual carriageway. The speculative development was completed by Rockspring Property Investment Managers who instructed Brown & Co to market in the region of 135,000 sq ft of industrial and warehousing in units that range from 10,000 to 45,000 sq ft. The scheme, now owned by Patrizia Property Investment Managers LLP consists of eight units, six have been let, one is currently under offer, leaving one available unit extending to 19,600 sq ft. Occupiers include Howdens Joinery Co and Multimatic Motor Sports (Ford GT).
Brown & Co’s Norwich agency team are appointed sole agents on a new trade counter and light industrial scheme at Dereham Business Hub, Dereham, Norfolk. The ten unit scheme is due for completion Q2 2020 and units range from approximately 4,000 sq ft to 8,740 sq ft. To date, three units are under offer and there is interest in a number of other units.
Both the above schemes demonstrate the demand there is for light industrial and trade counter units at the middle level from both local, regional and national occupiers. The on-going speculative development that our developer clients are embarking on demonstrate the market’s willingness to risk time and investment to meet the demand in this sector. Often these units will be occupied by existing local businesses looking to expand or relocate. This means their current premises will be available for other local and regional occupiers.
Should you have or be aware of land that could be developed for industrial use, please do not hesitate to contact the commercial team at Brown&Co.
Tim Humphrey MRICS
Commercial Surveyor, Partner
T: 01295 220210