The North West Lack of stock continues to trouble North West industrial market I
t seems as though the region’s industrial agents have been complaining about the lack of quality industrial and distribution stock levels in the market for some time. However, this problem still persists with many occupiers unable to find new premises in order to accommodate their planned expansion projects - Reports Julien Kenny Levick Director at Roger Hannah. Many of these occupiers cannot commit to build to suit options because they are either unable to commit to long leases or indeed pay high rents/prices for these units fuelled by all-time high construction costs. Where developers have been brave and taken the decision to construct speculatively these schemes have been largely successful. The likes of Harworth/LCPF at Logistics North, Bolton and Mountpark at Omega in Warrington have both witnessed considerable success with speculative development. The later has in fact secured Royal Mail to their 346,000 sq ft unit at a record rent of £6.25 psf for a unit of this size.
Although some developers have taken the brave move to speculatively build larger units for the booming internet retail sector, it is in the sub 50,000 sq ft size range where there is a real dearth of supply. Schemes for medium sized units are scarce but The Hurricane 47 unit in Liverpool and the Pinnacle 52 unit in Manchester have proved success in this range also. Rents in this sector have also seen record highs with coffee supplier Rijo42 paying £7.25 psf on 20,300 sq ft at Multiply, Bolton.
What has resulted in this lack of supply combined with a stronger economic outlook is a real and steady increase in rents and capital values. Industrial rents in the region have been static for decades
GVA appointed as joint agent on popular Warrington scheme
L
eading real estate advisor, GVA, has been instructed as join agent alongside Altus Eileen Bilton to market Genesis Centre, part of Warrington’s Birchwood Park business park.
The office suites available range from 500 to 6,000 sq ft with the opportunity for occupiers to take flexible leases from six months, and to be in occupation on a quick turnaround basis.
Rhys Evans at GVA said: “Following our appointment, we have seen some early successes, with Balfour Beatty taking 1,864 sq ft and UK Power Solutions has also agreed a letting on a 960 sq ft suite.
“Genesis Centre is one of Birchwood’s most iconic buildings and as the two recent lettings reflect, we expect this flexible offering to be a very popular one.”
Genesis Centre benefits from a number of on-site amenities, including a coffee shop, health and fitness facility in close proximity and showers. There is also free car parking provision on-site, which includes designated visitor’s spaces.
Birchwood Park is ideally located close to the M6 and M62 motorways, between the major cities of Manchester and Liverpool. It is also just a five-minute drive from Birchwood train station.
GVA has offices in Manchester, Liverpool, Leeds, London, Bristol, Cardiff, Edinburgh, Glasgow and Newcastle.
40 Julien Kenny-Levick
with only a few pockets seeing significant increases in the period. However, almost all North West locations have experienced a level of uplift ranging from 10-20% depending on location. Capital values have also risen substantially over recent times with some areas seeing £125 psf for sub 10,000 sq ft freehold units. This has meant that agents have had to re-educate their occupier clients who still expect to receive substantial incentives when signing new leases. The message for developers and property owners is to continue
with this latest raft of speculative development but turn their focus on the sub 50,000 sq ft market. Property owners should consider breathing new life into older stock by considering extensive refurbishments including raising roof heights and demolishing part of buildings to create better circulation areas. These measures could be seen as drastic and expensive steps but they will bring back to life functionally obsolete premises.
There is however a caveat with all of this called Brexit. As we move closer to EU withdrawal some occupiers are beginning to delay their relocation decisions until the fallout is clear which will in turn make developers think twice about developing-the cycle continues!
BA Commercial B
A Commercial is an independent commercial property consultancy operating across Cheshire and North Wales.
Providing advice for over 50 years, we are the region’s longest established firm of Chartered Surveyors.
Our specialisms include commercial agency, valuation, rent reviews, lease renewals, property management, building consultancy and dilapidations advice.
We are proud to have long established offices in both Chester and North Wales and a wealth of experience which is second to none in the market.
Our Key team members include Head of Agency Fraser Crewe, Head of Management and Professional services Ruth Fearnall, Head of Valuation Christopher Armstrong and Head of our North Wales office Gareth Williams
BA Commercial recently completed a brand identity refresh from the previous company name of Beresford Adams Commercial and relocated both its Chester and North Wales offices to smart new addresses on Grosvenor Street in Chester and The Roe in St Asaph.
For an initial conversation about your own commercial property requirements, from buying, selling and letting property to professional valuation and management advice please contact:
Chester office: 01244 351212 2 Friarsgate, Grosvenor Street, Chester CH1 1XG.
North Wales office: 01745 330077 Hanover House, The Roe, St Asaph LL17 0LT
COMMERCIAL PROPERTY MONTHLY 2018
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