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Warehouse sector boom

THE large distribution warehouse property sector across the county has been very buoyant throughout 2014 with the supply of available space at historically low levels.

In Corby, a 528,000 sq ft speculatively constructed building has been let to a well-known retailer. There are also strong levels of interest reported in Max 500, a modern distribution centre totalling 511,000 sq ft.

THE large distribution warehouse property sector across the county has been very buoyant throughout 2014 with the supply of available space at historically low levels.

In Corby, a 528,000 sq ft speculatively constructed building has been let to a well-known retailer. There are also strong levels of interest reported in Max 500, a modern distribution centre totalling 511,000 sq ft. This is one of the few remaining large distribution warehouses in excess of half a million sq ft in the UK.

The attraction to Corby from occupiers for large distribution warehouses has increased since the opening of the new Corby Link Road, which provides dual carriageway access to the A14 and wider motorway network. Prologis has consent for the second phase of its successful EuroHub development with up to 2.5 million sq ft to be developed on 150 acres. Large footplate buildings of up to one million sq ft or more can be provided, either to rent or purchase on a design and build basis. Also in Corby, Roxhill and L&G’s 70-acre rail connected site known as CIRFT is able to provide a new cross dock unit of up to 880,000 sq ft and is available on competitive rental terms.

At Prologis Park Kettering, the successful scheme is able to offer a few remaining plots for distribution units available on a pre-let basis from 50,000 sq ft up to 350,000 sq ft. There is also further land available for offices and other commercial and business uses. Also in Kettering, on Telford Way Industrial Estate, Burbage Realty has just let Access A14, a modern distribution warehouse totalling 109,000 sq ft.

In Wellingborough, Prologis Park Wellingborough West is moving forward and the new 160-acre logistics and employment park, which is adjacent to the successful Park Farm Industrial Estate, will provide up to 2.15 million sq ft of development in units from 100,000 sq ft to 700,000 sq ft on a leasehold and freehold basis.

In Northampton, there has been good take up of space in excess of 100,000 sq ft with recent deals on Brackmills Industrial Estate to Yodel and C Butt Logistics. There are now very few existing opportunities available to meet ongoing demand. At Brackmills Point, Hamdon Gate has completed the first speculatively built warehouse in the East Midlands since 2007 totalling 112,000 sqft. The unit is available to let on a new lease at a quoting rent of £5.75 per sq ft and good levels of interest are reported.

Short supply has seen the resurgence of speculative development and at Grange Park, Prologis recently acquired a site from Shepherd Developments and has already commenced construction of a new warehouse totalling 340,000 sq ft. Also at Grange Park Goodman Developments has acquired a 22-acre site for a price reported to be in excess of £600,000 per acre where it intends to speculatively develop two units of 161,000 sq ft and 290,000 sq ft respectively, subject to planning.

At Prologis Park Pineham, Plot C Zone 1, the last remaining plot totalling 6.19 acres with consent for a new unit of 104,500 sqft. The unit will be available on a new lease on a D&B basis. At DIRFT Phase II the one million sq ft rail connected distribution warehouse which was pre-let to Sainsbury’s, is nearing completion, leaving the final plot of 23 acres for a rail served unit of approximately 420,000 sq ft. Prologis RFI DIRFT III has now received planning consent and will provide a further 420 acres of land for development opportunities totalling 7.8 million sq ft. The scheme will include a new intermodal rail terminal and will ultimately accommodate 32 train movements a day. Units will range in size from 185,000 sq ft to 1.5 million sq ft.

Within Daventry, Prologis Apex Park provides a further 43 acres of land for development and benefits from detailed planning consent for units from 85,000 sq ft to 413,700 sq ft available on very competitive leasehold terms from £4.95 per sq ft.

There is growing confidence in the distribution warehouse property sector which is seeing a return to speculative development to replenish the historically low levels of supply. This is much needed to ensure occupiers continue to be attracted to the county and it remains the leading distribution location in the UK.

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Companies mentioned in this article

Burbage