Strong half for South Yorkshire industrial market
19 February 2014
South Yorkshire experienced the largest industrial property letting for existing stock across the UK in the second half of 2013, according to the findings of a new report from Knight Frank.
The LOGIC report highlighted the lease of 625,000 sq ft at Sheffield International Rail Freight Terminal to Marks and Spencer as the largest deal of its kind for the UK during the period.
The report also highlighted the take-up of industrial units above 50,000 sq ft for the region, which totalled 1.13m sq ft - more than three times the first-half total and 30 per cent higher than the five year bi-annual average.
"The results for the second half of 2013 showed South Yorkshire performing well for the take up of larger units, which was underpinned by the M&S letting," said Rebecca Schofield, partner at the Sheffield office of Knight Frank.
"This is primarily due to the available supply of larger units compared to other regions in the UK, which has focussed occupiers attention to the area.
"There is now significant pressure on industrial unit supply across the region. The situation is arguably most acute with regard to small to medium-sized unts, typically sub 25,000 sq ft."
Schofield added: "While reducing supply is yet to translate into headline rental growth, the increasing lack of choice has prompted a definite hardening of incentive packages over the past six months."