Brexit fails to slow down West Yorkshire's industrial property market

The Brexit vote has failed to have a negative impact on the industrial property market in West Yorkshire, according to property consultancy Knight Frank.

Knight Frank’s Logic Report reveals that take-up of industrial units over 50,000 sq ft totalled 1.2m sq ft across the region in the first half of 2016, which is 7% above the level of take-up over the same period last year and comparable to the five-year average.

The majority of take-up in the West Yorkshire region during the first six months of the year was for second-hand space, which accounted for almost four–fifths of the total.

Tom Lamb, industrial property partner with Knight Frank in Leeds, commented: “Despite the high level of take-up of second-hand space, there is demand for quality product and landlords, who are prepared to invest in improving their units are enhancing their returns.

“For example, Schroders’ refurbishment of Millshaw Park has seen new headline rents of £6.75 per sq ft achieved in Leeds and an increased level of enquiries.

“Demand is a mixture of third-party logistics and parcel delivery and retailers for the larger product in the region, but with a continued appetite in the mid-sized range from local manufacturing firms.

“Supply levels are diminishing - with any speculative development or quality product coming to the market being taken quickly. This is specific to the small and mid-sized range of sizes. For larger sheds in excess of 100,000 sq ft, the market is more subdued with several quality speculative buildings still unoccupied.

Mr Lamb added: “Wilton Developments are speculatively developing the next phase of the Aire Valley development, which includes a 60,000 sq ft detached unit and a terrace of two 10,000 sq ft units – one of which is already understood to be under offer.

“The east of Leeds remains well served by employment land with Muse Developments having a further 100 acres of development land following recent successful lets to Amazon and John Lewis and subsequent sales. Harworth Estates have recently bought out Keyland Developments from their joint venture at their 165-acre site at Temple Green.”