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Demand for Midlands warehousing not dampened due to COVID-19

One UK landlord says the three months of lockdown resulted in 329,000 sq ft of Midlands warehousing deals.

Schroder UK Real Estate Fund completed 328,582 sq ft of letting transactions over the last three months in 24 transactions, the vast bulk in Worcester and Dunstable.

Hartlebury Trading Estate in the West Midlands witnessed the most lettings transactions over the past three months with 247,432 sq ft let. This included a 164,712 sq ft, five-year lease extension to Forest Garden. The garden timber manufacturer will also be expanding its operation at Hartlebury, having also completed a new lease on an additional storage yard at the site.

A new 10-year lease for 55,101 sq ft of space was also completed with Concept Furniture International while ARCC Communications signed a new six-year lease for a 16,755 sq ft unit. Following these lettings, the 220-acre Hartlebury Trading Estate is now 99% let, with only one unit available.

The fund also completed significant lettings at its Arenson Way site in Dunstable with the arrival of Signature Flatbreads who has signed a new five-year lease for 40,775 sq ft.

The deals highlight the demand for space despite the ongoing problems caused by Covid-19.

The landlord has seen a significant rise in demand for industrial units which resulted in a 12% rise in net income over the past year, at a time when many landlords in the office, leisure and retail sector are seeing rent rolls tumble.

Rob Cosslett, Deputy Fund Manager, Schroder UK Real Estate Fund, said: “These latest transactions across our industrial assets have taken place despite the uncertainty caused by Covid-19. Not only is this an encouraging sign for the UK property market but also a clear indication of tenant confidence at these particular estates, reflected in the long-term nature of the lettings.

 

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