There are still good deals to be had on existing stock if you’re quick.
There are still deals to be struck on existing properties along the northern section of the M1 and A1 motorway corridors. Mike Baugh of DTZ notes: “Occupiers can negotiate contract friendly leases of three to five years versus a 15 year minimum on a D&B. Although the rental differential, looking at headline rents, is relatively limited – a £4.50 per sq ft versus £5 per sq ft – it is the incentive package behind the headline that makes the difference.”
But to secure such deals all agree occupiers are going to have to be more flexible on location. Baugh says that those looking for space from Junction 36 north on the M1 motorway are going to be disappointed. “Occupiers looking in the northern section [of the M1 motorway corridor]either have to look at D&B or widen the area of search into South Yorkshire.”
Existing properties include two units of 334,781 sq ft and 291,143 sq ft at Sheffield International Rail Freight Terminal (SIRFT) which can be joined to create a mega-shed of some 630,000 sq ft. Both have 15m eaves, 50kN/sq m floor loading and 30 dock and two level access doors. The units are located one mile from Junction 33 of the M1 and are available leasehold or freehold through letting agents GVA, Jones Lang LaSalle, CBRE and Moriarty & Co. Evander and Anglesea Capital also have two large units that can be combined at the 1.4 million sq ft Sherburn Distribution Park near Leeds. The 190,000 sq ft and 330,000 sq ft units were originally constructed on a common grid to allow their combination at a future date.
Other larger units in the region include SEGRO and Moorfield’s Blade facility which was developed by Gazeley. The 412,000 sq ft facility in Sheffield, offers 15m eaves, 40 dock and two level access doors, and a 50kN/sqm floor loading. It is located half a mile from Junctions 33 & 34 of the M1 motorway. Agents are CBRE and Knight Frank.
There are two buildings at Standard Life’s 930,000 sq ft First Point scheme in Doncaster, near to Junction 35 of the A1(M). Victor and Valiant total 246,000 sq ft and 277,000 sq ft respectively. The properties boast a range of features including 14m eaves height, fully-fitted offices with comfort cooling as well as 50m deep secure yards and ample parking for both lorries and cars. While there are no plans to physically link these two buildings together, they are located next door to each other and landlord Standard Life is prepared to be flexible. Letting agents are GVA and Colliers.
Smaller units include MountCity’s 205,000 sq ft Nexus36 warehouse located just of Junction 36 of the M1 at Barnsley. It boasts 14m eaves, 12 dock and two level access doors as well as a 50kn/sqm floor loading. It is being marketed by DTZ and Knight Frank. Then there is Magna34 at Junction 34 of the M1 motorway, totalling 152,421 sq ft. In addition there is Hellaby 140 totaling 141,845 sq ft at Junction 1 of the M18 Motorway boasting 12m eaves and 12 dock and two level access doors. It is available through Knight Frank and GVA.
Further down the A1 there is AXA REIM’s Arrow at Worksop totalling 330,418 sq ft. Letting agents are GVA and Knight Frank.Down on the M1 at Junction 26, there is Standard Life’s Langley 255 unit totalling 255,680 sq ft. It is being marketed by CBRE, North Rae Sanders and Innes England. Deals have been done that have taken up properties along the motorway corridors, the most recent of which is fashion and homewares retailer Next taking AXA Real Estate Investment Managers’ 263,000 sq ft Hurricane warehouse at Redhouse Interchange in Doncaster to service its on-line sales division.
Next has taken the property on a new 15 year FRI lease. AXA REIM was advised Gent Visick while CBRE advised Next.
Andrew Gent of Gent Visick noted: “The best buildings have gone and the ones that were not quite right are slowly being whittled away.”
For those who have to look for more bespoke options there is always D&B. “However,” says Rob Oliver of GVA, “the options for those looking for oven ready sites for space for warehouses over 200,000 sq ft are running out pretty quickly.”
Luckily there are a number of strategic sites along both motorway corridors that are coming through. In Leeds there is Muse developments’ 120 acre Logic Leeds scheme which is offering warehouses from 25,000 – 1 million sq ft and Bericote Properties and RREEF’s 70 acre Garforth site which could accommodate up to 1 million sq ft. Further south there is Gazeley’s 115 acre G.Park Doncaster site which has planning for three units of 650,000 sq ft 530,000 sq ft and 280,000 sq ft. Close by is iPort at Rossington being promoted by SEGRO, Helios Europe and Shepherd Alliance. This could accommodate up to 5.7 million sq ft of space. Letting agents are Gent Visick, BNP Paribas Real Estate and CBRE.
Further south along the A1 there is G.Park Newark which could take a unit of 750,000sq ft while over on the M1 there are a variety of sites including Henry Boot’s Markham Vale scheme which could accommodate up to 805,000 sq ft. Letting agent is Jones Lang LaSalle. Then there is Gladman’s 320,000 sq ft industrial development in Tankersley through joint letting agents DTZ and CBRE, and its 2 million sq ft Vertical Park scheme in Nottinghamshire through joint letting agents Lambert Smith Hampton and DTZ. A little further south is IM Properties 45 acre Eastwood site that could take up to 1 million sq ft.