Legal and General, advised jointly by Savills and Glenny, has let Unit A on Zenith Industrial Estate on Paycocke Road in Basildon to STS Flooring Distributors.
The flooring and carpet distributor has signed for 25,140 sq ft (2,335 sq m) of warehouse space on a 10-year lease and has agreed to pay an annual rent of £194,835, equating to £8.25 per sq ft (£88.80 per sq m).
This latest deal follows the letting to UK Mail Group, who also took 49,731 sq ft (4,620 sq m) of space on the industrial estate. The postal company agreed to a new 10-year lease at an annual rent of £335,684.
Will Edwards, Senior Fund Manager at Legal & General, comments: “It is testament to the quality of Zenith Industrial Estate and its strategic location close to London that the scheme continues to secure strong tenants at these premium rents. Basildon’s industrial market continues to benefit from strong occupational demand and a supply imbalance, which is driving solid rental performance."
Jack Booth, associate in the industrial & logistics team at Savills, adds: “At present, a severe shortage of good quality warehouse accommodation coupled with increasing demand throughout Basildon and the wider region means the area has witnessed annualised rental growth of almost 10% per annum for secondary product over the past three years.”
Two units totalling 10,001 sq ft (929 sq m) and 10,146 sq ft (942 sq m) respectively, remain available to let on the estate.
STS Flooring Distributors Ltd and UK Mail Group plc was unrepresented.