The Yorkshire and Humber industrial market has had a stellar start to the year with 2.9 million sq ft transacted in H118, according Savills. This has led to a record low level of industrial stock available.
The firm notes there is only 2.5 million sq ft available in the region as take up soared to 294% above H1 2017 levels. The ten deals recorded in the first half of the year all involved existing units, with only three units added to the market resulting in further shortfall. In Yorkshire, take up was driven by four large deals of over 300,000 sq ft including Clipper Logistics leasing 615,000 sq ft at Sheffield 615. This has resulted in only four Grade A units currently available in the market.
The North East region saw take up of industrial space reach 2 million sq ft (185,806 sq m) following a period of no activity dating back to 2015. Amazon leased 1.5 million sq ft (139,354 sq m) at Symmetry Park in Darlington, there were also three deals over 100,000 sq ft as occupier demand grew.
Developers are responding to the lack of Grade A supply and there are currently six units under construction totalling 1.1 million sq ft, according to Savills. The majority of the new development is concentrated in the Doncaster area where four of the units are being developed.
Dave Robinson, director in the industrial agency team in Leeds, comments: “The Yorkshire and Humber industrial market continues to go from strength to strength. The current pressure on supply coupled with the take up strong occupier demand leads us to believe that rents will reach £6 per sq ft in the next 12 month, up from £5.75 per sq ft.”