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Rents in Greater Manchester reach £7 a sq ft

Rents in Greater Manchester reach £7 a sq ft

So says CBRE, whose latest analysis of industrial occupier take-up in the first six months of 2018 shows the North West region , impacted by the lack of availability of modern units over 100,000 sq ft.

The first six months of the year in the North West region reported take-up of 1.5m sq ft of logistics space. 

Royal Mail signed for two units at Mountpark Omega Warrington and also at Stakehill Industrial Estate Middleton comprising over 450,000 sq ft.  Meanwhile, other major occupiers decided to commit to DtS developments including Movianto’s 360,000 sq ft at Haydock and manufacturer Tiger Trailers with a new 165,000 sq ft unit in Winsford, Cheshire.

A strong second half of the year is anticipate, with almost 1.4m sq ft of deals already under offer and some companies in talks to sign for a new building on a DtS basis. The need to go down this route is a response to the lack of Grade A stock which has led developers such as Mountpark and First Panattoni to speculatively develop big box units in core locations where demand from occupeirs remains strong.  

Paul Cook, Senior Director, CBRE’s Industrial team in Manchester said: “As a result of the supply situation, good secondary locations are starting to compete with the best prime locations in the region. The knock-on effect would mean locations such as Warrington, Trafford Park and Airport City could become “super-prime”.  

“The fact that Mountpark in Warrington has been able to let their principal speculative unit months before it was finished could convince more developers to advance development plans. Meanwhile rents have again increased in the region, with prime rents well above £6 and getting closer to £7 per sq.”

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