Member Article

Trifecta of North East trade park deals point towards sector recovery

North East trade centres are undergoing somewhat of a resurgence at present, with positive recovery and growth in the sector evident through a plethora of suppliers taking up new space.

Toolstation and City Plumbing Supplies are the latest national occupiers to commit to the Tyne Tunnel Trade Park, taking together nearly 11,000 sq ft.

Uptake at the Tenth Avenue Trade Park, based in Team Valley, from SBC Beds, part of Stanley-based Quality Discount Furniture, which has taken a 2,668 sq ft unit, complements goings on at the Tyne Tunnel, suggesting a renewed confidence in the sector previously adversely affected by the 2008 recession.

Mark Proudlock, partner at logistics & industrial agency Knight Frank, says the lettings underline the strength of the trade sector in the region, with well located trade Parks now securing rental levels in excess of those achieved even pre-recession.

He commented: “Toolstation for example has taken the 5,210 sq ft unit 7 on a 10-year lease at a new headline rent for the location of £7 per sq ft while SBC Beds secured Unit 3 Tenth Avenue Trade Park, immediately opposite Retail World on Team Valley at a rent equating to £12.50 per sq ft.

“Knight Frank has advised on the development and marketing of Trade Parks for well over a decade and it is encouraging to see such positive recovery and growth in what is now a mature sector.”

Knight Frank and Naylors Chartered Surveyors acted for UK Land Estates on the SBC letting while Knight Frank and Cushman & Wakefield acted on behalf of UK Land Estates on the Tyne Tunnel Estate lettings. Toolstation was represented by Adept Consultancy.

Mark added: “Critical to a company’s decision to acquire space on a Trade Park is an existing critical mass of occupiers targeting the same market. The most successful now boast a relatively consistent tenant mix, including the likes of Screwfix, Toolstation and Yesss Electrical with opportunities for entry onto established parks becoming ever more difficult resulting in an inevitable upward pressure on rents.”