The contraction and reorganisation of third party logistics providers is flooding the market with second-hand space, particularly in the Midlands.
According to Gerald Eve’s latest Prime Logistics report, the North West, Yorkshire and the West Midlands have seen around 15 million sq ft of second-hand space flood the market, and with business failures continuing to hit the headlines this release of space back to the market is expected to continue.
And research by BNP Paribas Real Estate’s Kevin Mofid shows that all regions have more second-hand stock than new stock. A lot of the space coming to the market is the result of consolidation and restructuring of 3PLs reacting to market conditions.
Lambert Smith Hampton has just been instructed to market Parkhouse Interchange, a 63,614 sq ft warehouse in Newcastle-under-Lyme, Staffordshire recently occupied by Norbert Dentressangle, which will vacate the building between now and September.
While Savills and North Rae Sanders are marketing Colossus in Penkridge, Staffordshire, which Wincanton had been using to service its M&S contract.
The 366,000 sq ft building has racking space for 18,000 pallets and is being marketed by Savills and North Rae Sanders at a quoting rent of £3.45 per sq ft.
DHL has two units in the Midlands totalling 600,000 sq ft including its unit at Daventry DIDC2, as well as 750,000 sq ft of space at Nimbus in Yorkshire, all of which it is looking to back fill.
King Sturge reports the trend in its Industrial & Distribution Floorspace Today survey. “At the end of 2008 our preliminary figures indicate an increase in total immediately available supply across Great Britain, excluding small units below 500 sq m, of six per cent compared with the end of 2007. With business failures rising, and demand likely to remain weak in the short-term, the overall level of available supply is likely to rise during 2009.” DSV at EuroCentral
DSV Road has opened a 55,000 sq ft bespoke distribution facility at the EuroCentral business park in Lanarkshire to cope with planned expansion following the acquisition of Roadferry last year.