Yorkshire & The Humber

31 January 2017, by Dave Robinson

Given the recent proportions of take-up in larger size ranges there remains the case for larger units to be speculatively developed in the Yorkshire and Humber region

 

 

 

▲ Units under construction at iPort Doncaster

Supply

■ There is currently 2.4 million sq ft available across 16 existing units, supply has marginally increased by 4% from Q4 2015. Supply has largely remained static as there has been a lack of speculative development in the market.

■ The quality of the space available is predominantly of a poor quality as 60% of the sq ft on the market is either Grade B or C. There are only two new units on the market which were both speculatively developed in 2015.

■ The current availability in Yorkshire is focussed below 200,000 sq ft as 87% of the units available are in this bracket. The largest unit on the market is the former DHL on Brunel Close, Harworth where 305,348 sq ft is available.

FIGURE 15

Supply by grade

 
Figure 15

Source: Savills Research

Take-up

■ Yorkshire witnessed a strong year for transactional activity in 2016 as take-up reached 3.9 million sq ft. This was 18% above 2015 total take-up and 39% above the long-term average underlining the strong occupier demand in the market.

■ The lack of large units available on the market has meant that many occupiers have chosen the build to suit route to fulfil their warehouse requirements. Build to suit deals accounted for 58% of the sq ft transacted in 2016 highlighting their current dominance in the market.

■ The largest deal was Amazon acquiring 1.1 million sq ft at Verdion’s iPort in Doncaster. There were five deals at iPort in 2016 totalling 2.3 million sq ft which was the highest amount for one scheme across the UK in 2016.

■ There were three 500,000 sq ft and above deals in 2016, the aforementioned Amazon deal at iPort, Lidl acquired 628,000 sq ft at iPort and L&G Homes leased 550,336 at the Big555 in Sherburn-in-Elmet. This was the biggest deal for an existing unit in 2016, the Big555 had been vacant since achieving practical completion at the peak of the previous development cycle before the global financial crisis.

FIGURE 16

Take-up

 
Figure 15

Source: Savills Research

FIGURE 17

Proportion of take-up by grade

 
Figure 17

Source: Savills Research

Development Pipeline

■ There are two units under construction totalling 295,000 sq ft, the largest being IP2a.2 at iPort where Verdion are developing 195,000 sq ft.

TABLE 5

Key Stats

 
Table 5

 

placeholder

Key Contacts

Dave Robinson

Dave Robinson

Director
Industrial & Logistics – North

Savills Leeds

+44 (0) 113 220 1218

 

Kevin Mofid

Kevin Mofid

Director
Commercial Research

Savills Margaret Street

 

Subscribe to Savills research

 

Would you like to be notified via email about new research?