Although it is currently all go at the ports, airports too are generating a considerable amount of new warehouse development to serve the market in particular Heathrow with the imminent completion of T5.
Tunde Adegbemile of DTZ Debenham Tie Leung says: “There is a resumption of speculative activity in the Heathrow market – on our radar 650,000 sq ft of it in buildings of 50,000 sq ft plus.
“The last major event which altered the dynamics of the air industry and actually ground [speculative building] to a halt was 9/11. Since then, there has been a period of inertia with a resumption on confidence following the start of construction of Heathrow’s T5.
“Developers will vote with their feet and try to take advantage of the market. With T5 completing in March 2008 there is bound to be a growth in cargo and passenger numbers. All of these will have a knock-on impact in the air service industry and all of these businesses will need somewhere to go.”
Schemes include SEGRO’s LHR1 totalling 95,800 sq ft boasting 10 m eaves and a three-storey office to the front; there are six dock and four level access doors. Joint agents are DTZ Debenham Tie Leung, Jones Lang LaSalle and de Souza.
There is also Brixton’s two-storey warehouse concept X2, which sits on a 6.5-acre site on the Great South West Road in Hatton Cross and will total 241,000 sq ft. It will have full HGV access to the upper floors. Letting agents are CB Richard Ellis and King Sturge.