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Feel-good factor returns to West Yorkshire logistics market

The ’“feel-good” factor is slowly returning to logistics and industrial property occupiers in the West Yorkshire market, according to the latest research from global property consultancy Knight Frank.

Take-up for the first six months of this year was 1.1m sq ft, marginally above the H2 2012 total of 1.03m sq ft but up 63 per cent year-on-year.

However, only one deal involved new-build space - One Stop’s lease of 120,000 sq ft at Prologis Wakefield.

An increase in design and build as well as speculative developments is expected, albeit on a smaller scale with units up to 20,000 sq ft.

Rental levels on sub-5,000 sq ft units have increased sufficiently to make development for this size range viable.

Owen Holder, logistics and industrial property partner in the Leeds office of Knight Frank, commented: “Headline rents and incentives are consistent with the last six months of last year, with landlords continuing to offer rental discounts to businesses considering relocation.

“Third party logistics remains the most active sector, with Norbert Dentressangle leading customer enquiry levels presently.

“There is a severe under-supply of Grade A stock in the Leeds market, particularly for units ranging between 30,000-50,000 sq ft. As a result good quality refurbished accommodation is attracting healthy demand.

“A number of design and build enquiries are currently in the market, ranging in size from 80,000 to 120,000 sq ft, and primarily along the M62 corridor.”

Mr Holder added that land supply is ample, with over 500 acres allocated in the Aire Valley and further availability in the M62 corridor between Junctions 30 and 36.

The majority of sites are developer controlled, with limited sites of greater than five acres available for outright purchase by owner-occupiers.

This was posted in Bdaily's Members' News section by Mark Lane .

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