East of England

31 January 2017, by William Rose

For the third year running we have seen above average take-up in the market. The East of England offers occupiers a cost effective distribution location, close to major arterial roads and the East Coast ports

 

 

 

▲ Logicor's Kingston 189

Supply

■ Supply in the East of England continues to fall and currently stands at 738,062 sq ft across four units. This represents a 35% decrease in available supply from Q4 2016.

■ There is only one Grade A unit available which is Logicor’s Kingston 189 where 189,697 sq ft is available, this is however under offer. Across the East of England, two of the three units available are located in Peterborough which highlights the lack of supply in the other markets within the region.

Take-up

■ 2016 was a strong year for the East of England market with 1.3m sq ft transacted. This is 11.5% up on 2015 total and 112% above the long-term average.

■ Land deals by MMUK and IKO have ensured that there is currently over 1m sq ft coming out of the ground at Alconbury Weald in Huntingdon. These have been build to suit deals as the lack of supply in the market has meant that occupiers who require large new facilities will have go down the build to suit route.

■ Build to suit deals accounted for 50% of deals recorded in 2016. This has been a prevalent theme throughout the East of England region as build to suit deals have accounted for over 50% of the deals recorded twice since 2008. The other notable build to suit deal in 2016 was Kingsley Beverage acquiring 150,000 sq ft at Peterborough Gateway.

■ The lack of speculative development in the market has meant that no new units have been let in over five years.

■ In 2016, the wholesale business sector was the most active, accounting for 38% of space transacted. Historically the food production sector has been the most active since 2007; the sector has acquired 979,487 sq ft in this time period.

FIGURE 21

Take-up

 
Figure 21

Source: Savills Research

FIGURE 22

Take-up by occupier type

 
Figure 22

Source: Savills Research

FIGURE 23

Take-up by size range

 
Figure 23

Source: Savills Research

Development Pipeline

■ There are no units being speculatively developed in the market. This will result in supply constraints continuing to hamper take-up from further increasing and build to suit options as the only viable option for occupiers who are looking to secure new warehouse space.

TABLE 7

Key Stats

 
Table 7

 

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Key Contacts

William Rose

William Rose

Director
Industrial & Logistics

Savills Peterborough

+44 (0) 1733 201 391

 

Kevin Mofid

Kevin Mofid

Director
Commercial Research

Savills Margaret Street

 

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