Small box sheds will make the running in Greater Manchester’s warehouse property market, a senior city consultant is predicting.
According to Simon Hampson, director at Avison Young, developers are pressing on with speculative small box schemes – and more will follow.
Until recently speculative development in the Greater Manchester area has been the preserve of the big box market, but that is now changing.
Small box developments include Aurora Stockport, developed by the local council, Sladen Estates’s four-unit scheme at Pilsworth, pushing quoting rents to £7.25 a sq ft,, and at Vulcan Industrial Estate Oldham Beva Investments are quoting rents from £6.25 a sq ft.
The rise in rents has been a key factor in prompting developers to speculate in the small box sector.
Simon Hampson, director Avison Young, said: “Small to medium sized companies want the convenience of a ready-made product but until very recently very little stock has been available. That is now changing and the market is adapting accordingly.”
With such limited availability of new high quality units, particularly on a sale basis, occupiers need careful guidance to negotiate the purchase process to ensure they achieve the very best terms. Having market knowledge about new small schemes coming to market is also crucial to get ahead of the stiff competition. If they can find out about schemes under development and not yet fully on the market they can achieve that all important competitive edge. We have been working with a lot of occupiers to find them these smaller opportunities and are seeing an increase in the number of acquisitions that are completed off market.”