the yorkshire region |
SOUTH YORKSHIRE OVERVIEW T
by Rebecca Schofield and Peter Whiteley, both partners at Knight Frank
he second half of 2015 has
brought continued activity across South Yorkshire's industrial property market.
Occupier Rebecca Schofield
demand has remained strong, in line with improving
economic fundamentals, and that demand has been seen across a broad sector spread, with particularly strong demand witnessed for warehousing, general industrial and manufacturing. Retailers and associated logistics operators have dominated demand for the region's larger units. Multi-channel retailing has taken precedence for the distribution sector. The growth of on-line retailing has forced parcel carriers to greater expansion. As a result, Knight Frank has seen increased occupier requirements, both at local and regional levels, often for low density, bespoke sites. With regards to availability of stock, there is a general shortage of good quality units across all size ranges within the South Yorkshire Region and there are currently only three modern buildings of over 100,000 sq.ft immediately available. Overall, incentives are reducing, headline rents are hardening in certain size brackets and lease terms are lengthening as evidenced by recent deals and this is expected to continue.
Where some occupiers are forced to consider build to suit opportunities, they
are favouring sites which are immediately deliverable with planning consent and infra- structure in place, such as Capitol Park Barnsley, J37 M1, where there is 12 acres ready for development at and Smithywood, J35 M1, where there is 29 acres ready for immediate development. Both are within Enterprise Zones. We have started to see developers responding to the shortage of stock with Harworth Estates on site with a speculative 75,000 sq.ft at Barnsley's Gateway 36 and Verdion are on site with two units at I-Port. Both schemes are being well received in the market.
What is apparent is the rise of the region as a hub for advanced manufacturing through developments at the Advanced Manufacturing Park and Sheffield Business Park, following the establishment of Factory 2050. This is really positive for the region, bolstered by support through local government initiatives and is attracting other like-minded businesses to the area. Harworth Estates have recently secured planning consent for 52,000 sq.ft of accommodation at the AMP for units of 4,900 sq.ft upwards and we are discussing the possibility of this being speculatively built. We are confident that if speculative development came forward here, there would be good levels of take up.” Peter Whiteley, partner and head of the Sheffield office of Knight Frank, said: “The picture for 2016 in Sheffield is
very much dominated by the development and supply of office stock in the centre of the city and it looks like we are in for an interesting year. For the first time in many
years, we have three key projects taking shape in the primary office accommodation sector of the city, all within 500 yards of each other, and Knight Frank is appointed on all of these schemes. 3 St Paul's Place has now been brought to completion in a joint venture by David Topham at CTP and U + i, marking the final phase of The Heart of the City development. This brings 76,000 sq.ft of prime Grade A offices to the market and the first occupier, Arup, has already signed to take the top two floors, encompassing 16,000 sq.ft of space. We are also excited about Scotts Developments' re-development of Steel City House, on the junction of Trippet Lane and West Street adjacent to Leopold Square, which will release 67,000 sq.ft of Grade A accommodation to the prime market and will incorporate a two-storey roof extension with terraces. The third notable project is Brook
Peter Whiteley
Group's re-development of the long- vacated NUM building at Barkers Pool adjacent to the City Hall to create three restaurants or bars at ground level, with 14,000 sq.ft of Grade A offices on the upper floors. We are already seeing significant interest in this scheme because of its superb location and specification and can confirm that Grant Thornton has agreed terms on 14,000 sq.ft.”
2
015 was a stellar year in the Industrial market across the Yorkshire and Humber region with take up at 10.3 million sq ft and well above the 10 year average of 9.5 million sq ft, although this was distorted by a number of large deals. Availability dropped to 18.3 million sq ft which was one of the sharpest declines outside of London with the greatest demand being in the
Tom Burlaga
mid-box sector where take-up was 27% higher than 2014. As rents continue to slowly increase and with speculative development now on the agenda, we anticipate further growth in this area.
COMMERCIAL PROPERTY MONTHLY 2016
LOOKING AT YORKSHIRE AND HUMBER by Tom Burlaga MSC MRICS, Lambert Smith Hampton The Government’s Northern
Powerhouse initiative continues to gather momentum and the cities within our region have a real opportunity to forge their own paths. With regards to Sheffield as an example, the ‘Advanced Manufacturing Innovation District’ could become a global brand with the likes of Rolls Royce at the Advanced Manufacturing Park, Factory 2050 at Sheffield Business Park and the Advanced Wellbeing Centre at the Olympic Legacy Park all being world-class facilities in their areas of expertise. However, power and transport infrastructure continue to be a notable barrier for some of the larger developers in the region and it is imperative that the private and public sector work more closely to deliver the required links, especially given the recent devolution deal in Sheffield which will free up £30 million a year for such projects.
As for Lambert Smith Hampton (LSH), 2015 was a transformational year during which it executed a number of new client initiatives and put together some of the major deals across Yorkshire and the Humber. Fending off stiff competition from
Knight Frank and JLL, LSH won the coveted Best Large Agency Practice of the Year at the 2016 Insider Yorkshire Property Awards at Rudding Park Hotel in Harrogate. The judging panel praised LSH’s full client service offering and was particularly impressed with how it had turned itself around following its acquisition by Countrywide in 2013, citing it to have ‘real forward momentum’. During the year, LSH’s team was also
involved in a variety of major projects across Yorkshire and the Humber. For more details please tel: 0141 275 3752 or email:
TBurlaga@lsh.co.uk
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