FPS Team Valley deal 'sets tone' for new demand

A motoring parts delivery firm has secured a 15-year warehouse deal tipped to “set a new tone” for a North East estate.

FPS Distribution has agreed a deal for a 36,000sq ft base on Eighth Avenue, Team Valley.

The site comes equipped with solar panels, air source heat pumps and electric vehicle charging stations, with commercial property bosses saying it will lead to greater demand for such units.

FPS, part of Alliance Automotive Group, will use the base – built and owned by UK Land Estates – as a regional distribution centre.

UK Land Estates is now building a 65,000sq ft warehouse on Team Valley’s Centralway.

Keith Stewart, partner at commercial property consultancy Naylors Gavin Black – which operates as a joint agent alongside Knight Frank – said: “UK Land has delivered a high-quality unit with exemplar ESG credentials, which most tenants now want, so there were a number of interested parties. 

“The letting to a business like FPS on a long lease demonstrates there is healthy demand for mid-size units in the region. 

“And we’re expecting high interest in UK Land’s 65,000sq ft warehouse.”

David Gibbs, UK Land Estates’ property director, added: “Securing a strong covenant business such as FPS is a fantastic result.

“The letting evidences demand in the estate, and allows us to continue further schemes such as Centralway with confidence.”

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