Industrial property remains strong in Leeds City Region
28 Nov 2017
The industrial property market in Leeds City Region remains strong, despite fears that the sector would be adversely affected following the uncertainty caused by the general election and Brexit, according to leading Yorkshire property consultancy Dove Haigh Phillips (DHP).
Mike Dove, co-founder and director of Leeds-based DHP, predicts that the West Yorkshire industrial market will continue to perform well into the second half of 2017 with a number of available units, of all sizes, under offer.
Prime rental levels for the mid-sized sub market concerning units ranging from 30,000 to 60,000 sq ft are expected to rise in the near future, with newly-completed and design & build options now being marketed at quoting levels of between £5.95 to £6.25 per sq ft.
Mr Dove commented: “Occupier demand across the region remains steady with take-up of industrial and warehouse units of over 50,000 sq ft across West Yorkshire totalling over 700,000 sq ft in the first half of 2017. This represents more than double the level of take-up compared to the last six months of 2016.
“The lack of stock has contributed to an increase in design and build requirements, as companies struggle to identify existing units that can accommodate their exact needs. The development sites within the Leeds City Region Enterprise Zone in the Aire Valley such as the Gateway 45 scheme are well-placed to accommodate this demand,” said Mr Dove. “So, too is Sherburn2, a pioneering £105 million Yorkshire business park, which has the capacity to create 2,550 sustainable jobs.”
“Meeting this pent-up demand and unlocking “deliverable” land is the key to the recovery of the Yorkshire economy. We are in constant contact with companies who want quality new premises in West Yorkshire.
“This isn’t just idle talk. These companies have instructed their engineers and architects to draw up detailed designs. At the same time, the more forward-looking local councils in Yorkshire, emboldened by the Government’s relaxing of the planning laws, are pro-actively identifying sites for inward investment.”
Mr Dove said manufacturers’ requirements for land ranged from 3,000 sq ft to 50 acres.
“They want quality premises close to their workforce, which provide modern and flexible manufacturing and office space. They want premises which reflect and represent the values of their business. Mike Dove said that inquiries were coming from across all manufacturing sectors, including precision, medical and nautical engineering, robotics, packaging, electrical controls and green fuel delivery.
He said: “All this is potentially tremendously good news for Yorkshire, which is already a centre of excellence. The county’s workforce, with its can-do attitude, is our greatest asset, backed up by an improving transport network.”
Mr Dove said that Dove Haigh Phillips was well-positioned to facilitate developments across the county in the coming months and years.
“For example leading Yorkshire property development company Glentrool Estates Group is transforming a 75-acre site at Junction 42 of the A1(M) Sherburn-in-Elmet, Leeds into a first-class business and employment park.
“This is one of the most significant new development sites in the Yorkshire region, both in terms of the jobs it will create and the inward investment it will attract. It is superbly located with Yorkshire’s excellent motorway network only minutes away, and midway between the cities of Leeds and York, with Selby and Tadcaster close by. There are also excellent rail links”.
On an equally impressive scale, Caddick Developments has completed Phase One of the £100million prime distribution/logistics scheme Crosspoint33, located immediately off Junction 33 of the M62 near Wakefield. Phase one of the development is home to the new UK processing and distribution centre for TJX Europe, the parent company of retail brand TK Maxx and HomeSense, providing more than 1.2m sq. ft. of accommodation.
The project was delivered by Caddick Developments, with sister company Caddick Construction undertaking all building works. The TJX Europe building has been forward sold to specialist logistics investor Tritax.
Meanwhile, on a smaller scale, the success of Park Valley Mills in Huddersfield is a classic example of how a quality development can reap dividends. Phase Four of the major regeneration of the historic 13-acre Park Valley Mills site in Lockwood, Huddersfield, has been completed – and is already fully let.
The flagship site, which is owned by Holmfirth Dyers, has been transformed into a high-quality business park, featuring 18 brand-new industrial units with office and storage space.
Park Valley Mills had previously been derelict for many years, with buildings falling into disrepair. Now the revamped site off Meltham Road in Lockwood is creating new jobs and regenerating the area.
Mike Dove explained: “This is a superb development for Huddersfield, which has created jobs and regenerated the area. So much has been achieved already. The transformation of a neglected site into what we see here today is amazing and Park Valley Business Park will provide much-needed expansion space for businesses to the Huddersfield area. The vision and drive of everyone involved in this regeneration project has been amazing.”