Three quarters of new industrial take-up this year was design and build, according to the latest statistics from CBRE.
However that picture does not reflect the whole market says Richard Meering of CBRE. “In the Midlands no notable design and builds have taken place so far this year, albeit a number of deals are in the offing including a 1 million sq ft deal at DIRFT in Daventry, which rumoured to be going to a major retailer, and Roxhill Developments, which is about to sign 300,000 sq ft at Brackmills Point, Northampton. Network Rail is also taking 300,000 sq ft at ProLogis’ Ryton scheme in Coventry.”
What is notable across the whole country is a distinct shortage of space. In the Midland Mr Meering notes: that there continues to be a severe shortage of new industrial stock in the Midlands, with less than six months’ supply left based on the long-term annual average take-up of 6.44 million sq ft.
According to CBRE’s statistics, in the Midlands there is now just 7.12m sq ft of industrial space available, down 12 per cent since the end of 2011. The availability of new space fell more sharply (down 30 per cent), with new stock accounting for around a third of the total available space.
“There is a distinct and severe lack of available stock, particularly large new kit, in the Midlands,” said Mr Meering.
“You can almost count the number of available buildings between 200,000 sq ft and 500,000 sq ft on one hand, and with strong interest being shown in a number of these units the shortage could be further compounded.