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    2012 uk industrial and distribution market overview 2012 uk industrial and distribution market overview Document Transcript

    • Industrial &Distribution2 0 1 2 market overview
    • introduction 1south east england 2south west england 3greater london 4east england 5prime gets primer and developers build speculatively 6wales 7east midlands 8land banks and mixed use development 9west midlands 10north west england 11east london – one to watch 12yorkshire/humberside 13north east england 14poor grade will struggle 15hotspot’s north 15scotland 16appendix 17uk distribution motorway map 18market structure 19big box dilemma & the 3pl challenge 20continuing to green 21
    • Industrial & Distribution 2012 market overview 1introductionThis is the 5th edition of the Industrial and Distribution Market Overview for the UK and coincides with the 5th anniversary of the onsetof the financial crisis in the UK. After five years of uncertainty we’re surely not the only ones hoping that 2012 will be the turning pointfor the macro economic situation in the UK. There have been hotspots and winners despite the testing business climate but the healthyevolution of the UK industrial property market in the UK needs confidence and stability to return.Some take the view that we are over the worst of the Eurozone crisis. Whether that is the case remains to be seen but certainly as we writethe fear of a complete meltdown has abated and there is more confident talk in political and commercial quarters.As it is, 2011 will go down as a mixed year where, in many cases it was a bit of a plod from the previous. There is plenty of contrasting dataaround take up and supply across the UK.On the positive side, there was a good level of activity from retailers. While trading is challenging on the high street there are certainnew and established brands which have prospered. At the same time whether trading is good or not, many of the rest are looking at thecomponents of the supply chain. All this change feeds into industrial market activity.Manufacturing is also making a resurgence. The big brand names in the East Midlands and other regions tend to grab the headlines butbehind them are many SME’s either prospering independently or benefiting in the slipstream.Let’s not get ahead of ourselves but there are certainly some green shoots emerging from an industrial market perspective.Overleaf is an updated, region by region indication of property values, land and capital land rentals as well as an overview of the economicvariations, GVA per head, labour rates and summary of recent news items. There is also an added feature of commentary on the outlookof each market.Included are land capital rental values by town for each of the areas as well as an outlook for each market.In the last section we have included a map of the UK distribution motorway network as well as an overview of the latest market structureand breakdown.Andrew SmithDirector, Industrial AgencyMay 2012© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 2south east england Overview Main industrial locations —— Heathrow —— Park Royal —— Dartford Major motorways —— M25, M4, M40, M20, M1, A1(M), M3 Nearest freight terminal —— Heathrow —— Folkestone —— Stansted —— Felixstowe —— Gatwick —— Southampton —— Dover Largest employee sectors Examples Labour rates IT/Financial/Professional Services Vodafone Managers/Senior Officials HGV Drivers Wholesale and Retail Sainsbury’s Rate p/hr £19.27 £10.25 Manufacturing Vauxhall Rate p/a £38,002 £25,012Employment Recent real estate newsUnemployment in the South‑East is 6.3%, an increase of 3.2% —— A Capita Symonds client acquired the 300,000 sq ftsince 2011, however it is still one of the lowest in the country. GVA (10 acre) former Arjo Wiggins site in Dartford for mixed useper head is £21,924. The region contributes 14.7% of the total UK redevelopment for an undisclosed sum.GVA (£1.301bn), the second largest contribution after the Greater —— Furniture Village Plc has taken 104,500 sq ft (9,708 sq m)London area. of industrial space within Unit DC3 in Milton Keynes from Prologis Group Holdings Ltd on a new lease atProperty values £600,875 pa, equating to £5.75 psf (£61.89 psm). —— Palmer & Harvey Ltd has taken 167,730 sq ft (15,583 sq m) Town ERV CV LV of warehouse space in 1 G Park, Hemel Hempstead on Bedford £6.00 £65.00 £400,000 a 25‑year lease at £997,994 pa, equating to £5.95 psf Brighton £7.50 £100.00 £550,000 (£64.04 psm). Didcot £6.75 £105.00 £500,000 —— Motorline bought a 10,000 sq ft industrial unit in Tunbridge Wells. Capita Symonds acted for Royal Mail in the Oxford £8.00 £110.00 £550,000 surrender of the lease. Portsmouth £7.50 £85.00 £375,000 —— Nampak Cartons and Healthcare Limited have acquired Reading £8.50 £110.00 £550,000 50,127 sq ft industrial facility in Fareham. The lease is Southampton £7.50 £90.00 £500,000 for 15 years long with an option to break in the 7th yearERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre (2018). The rent is 298,255 pa, equating to £5.95psf. —— Capita Symonds acted on behalf of AXA in the letting of a 1 acre site at Chequers Lane, Dagenham to Morgan Sindall on flexible lease at £50,000 per annum.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 3south west england Overview Main industrial locations —— Swindon —— Bristol —— Plymouth Major motorways —— M4, M5 Nearest freight terminal —— Bristol —— Plymouth Largest employee sectors Examples Labour rates Health and Education NHS Managers/Senior Officials HGV Drivers Business and Financial Services Nationwide Rate p/hr £16.15 £9.72 Retail Co-op Rate p/a £31,882 £22,531Employment —— WH Malcolm Ltd has taken 250,000 sq ft (23,226 sq m)Unemployment is 6.1%, this is the lowest rate in the country. GVA of warehouse space at Western Approach Distributionper head is £18,669, an increase of 2.6% since 2009. It contributes Park, Bristol, from London & Stamford Property Plc on a7.7% of the total UK’s GVA. seven year lease at £1,000,000 pa, equating to £4.00 psf (£43.05 psm), subject to an option to break in year three.Property values —— St Austell Brewery Co Ltd has purchased the freehold interest in its own 50,000 sq ft (4,645.15 sq m) distribution Town ERV CV LV warehouse in St.Columb from former landlord Klina Ltd (in receivership) for £2,000,000. Bristol £7.50 £90.00 £275,000 —— Boomeco Ltd have taken 77,982 sq ft (7,244.76 sq m) Cheltenham £6.50 £75.00 £300,000 of industrial space in Estuary Park, Avonmouth, from Gloucester £6.50 £80.00 £350,000 Lasalle Investment Management on a five year lease at Swindon £5.75 £85.00 £300,000 £233,946 pa, equating to £3.00 psf (£32.29 psm), subjectERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre to an option to break in year three. —— DMG Ltd. have taken 107,000 sq ft (9,941 sq m) of industrial space within Building 2, Westland Distribution Park, Weston Super Mare. from St Modwen on a five‑yearRecent real estate news lease at £107,000 pa, equating to £1.00 psf (£10.76 psm).—— Capita Symonds, on behalf of Trelleborg, disposed of the —— West Design Products Ltd has bought a freehold interest 12 acre (100,000 sq ft) former Trelleborg site in Trowbridge in Plymouth. It consists of 78,806 sq ft (7,321 sq m) of for £2.1 million to DTR VMS with completion due in industrial space for £1,300,000. May 2012.—— City Link has taken 66,753 sq ft (6,202 sq m) of industrial space at Jupiter Road Distribution Centre, Bristol, from Prudential Plc. on a 10‑year lease at £300,000 pa, equating to £4.49 psf (£48.37 psm)© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 4greater london Overview Main industrial locations Luton A1(M) M11 —— Luton M1 —— Harlow Hemel Harlow —— Chelmsford Hempstead M25 Chelmsford M25 M25 Basildon M40 Enfield Dagenham Slough Park & Barking M4 Royal Bracknell Heathrow Dartford M20 Croydon M26 M3 M25 M25 Guildford M23 Largest employee sectors Examples Labour rates Business and Financal Services HSBC Group, Barclays Managers/Senior Officials HGV Drivers Government Central Government Rate p/hr £24.48 £11.35 Health and Education GSK Rate p/a £48,498 £26,358Employment Recent real estate newsUnemployment in Greater London stands at 10%, one of the —— Capita Symonds acted on behalf of the LDA in lettinghighest in the country. It has increased from last years figure of 9%. Sugarhouse, a warehouse in Stratford consisting ofGVA, however, is £35,026, which is an increase of 0.71% on the 21,483 sq ft to Serco at £6.25 psf.previous year of £34,779. This accounts for 21.5% of the UK’s GVA, —— Fedex UK has taken 41,110 sq ft (3,819 sq m) of industrialthe biggest single contribution of the UK regions. space at 1‑11 Galloway Road, London, from OCS Ltd on a fifteen‑year lease at £369,990 pa, equating to £9.00 psfProperty values (£96.76 psm). —— Capita Symonds have let 3 of 4 vacant units on Trident Town ERV CV LV Industrial Estate, Poyle at a headline rents of £10.50 psf. Basildon £6.50 £75.00 £325,000 —— Waitrose Ltd has taken 198,221 sq ft (18,415 sq m) Bracknell £8.00 £105.00 £550,000 of industrial space in Ealing on a five‑year lease at Chelmsford £7.25 £95.00 £500,000 £850,000 pa, equating to £7.75 psf (£83.41 psm). —— Speedy Hire Asset Services Ltd has taken 20,430 sq ft Croydon £8.50 £110.00 £750,000 (1,898 sq m) of ground‑floor industrial space in 43‑49 Dagenham & Barking £8.00 £110.00 £750,000 Minerva Road, Ealing, from Eskmuir Properties Ltd on Dartford £8.25 £100.00 £550,000 a 10‑year lease at £199,193 pa, equating to £9.75 psf Enfield £9.00 £115.00 £850,000 (£104.95 psm), subject to a rent review and an option to Guildford £9.25 £110.00 £750,000 break in year five. Harlow £7.00 £75.00 £350,000 —— Capita Symonds acquired 18,315 sq ft on the North Feltham Trading Estate, Heathrow on behalf of Marken Ltd Heathrow 12.50 £150.00 £1,700,000 at a rental of £10.00 psf with 20 months rent free on a 10 Hemel Hempstead £8.00 £110.00 £650,000 year lease (break at the 7th). Luton £7.00 £100.00 £500,000 —— Capita Symonds has recently won an instruction from Park Royal £13.25 £150.00 £1,800,000 Royal Mail to dispose of their 183,000 sq ft warehouse in Slough £11.75 £115.00 £1,100,000 Bromley by Bow.ERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 5east england Overview Main industrial locations —— Norwich —— Ipswich —— Cambridge Major motorways —— M11 Nearest freight terminal —— Felixstowe —— Harwich Port Largest employee sectors Examples Labour rates Manufacturing Procter & Gamble Managers/Senior Officials HGV Drivers Wholesale and Retail Premier Foods Rate p/hr £17.91 £10.28 Manufacturing/Engineering Senior PLC Rate p/a £35,682 £25,881Employment Recent real estate newsThe East of England’s unemployment rate is currently 7%, the third —— Ups Ltd has taken 25,275 sq ft (2,348.12 sq m) oflowest in the UK. GVA has increased by 2.42% to £18,996 per head industrial/warehouse space at 48 Hurricane Way, Norwich,since the previous year. The East contributes 8.7% of the UK’s GVA. on a five year lease at £83,500 pa, equating to £3.30 psf (£35.36 psm).Property values —— Marexport Ltd has taken 24,497 sq ft (2,276 sq m) of industrial space in unit 2 cliff Road, Ipswich at £96,763 pa, Town ERV CV LV equating to £3.95 psf (£42.52 psm). Colchester £6.50 £90.00 £325,000 —— Airvert Ltd has purchased the freehold interest in Felixstowe £5.00 £60.00 £150,000 46,864 sq ft 4,354sq m) of warehouse space at Chiswick Avenue, Mildenhall for £1,200,000. Ipswich £5.00 £65.00 £160,000 —— Hotel Chocolat Ltd has taken 110,000 sq ft (10,219 sq m) Norwich £5.00 £70.00 £175,000 of ground‑floor industrial space at Alpha Park, near Bedford Peterborough £5.25 £55.00 £200,000 on confidential terms. King Sturge acted on behalf of theERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre landlord. —— The Denholm Group has taken 160,000 sq ft (14,864.49 sq m) of industrial space in Unit E from Verbrugge International BV on a sublease expiring in September 2013 on confidential terms. —— Freshpeel Produce Limited has purchased the freehold interest in 30,775 sq ft (2,857 sq m) of Factory space in Wisbech from Greenvale Foods Limited for £875,000.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 6 Industrial & Distribution There is estimated to be over about 1 million sq ft of spec 2012 market overview development under construction in over 20 schemes around the country. About half of that is within the Greater London and South prime gets primer East area. Historically we would have expected the Heathrow sub-market to and developers build be headlining the speculative development story. This time round though its more about Park Royal which on current evidence looks likely to surpass Heathrow (excluding airside) as the most expensive speculatively industrial location in the UK. Park Royal is a diverse industrial location with a broad tenant base covering manufacturers, Andrew Smith – Director, Industrial Agency warehousing and specialist logistics. Where Heathrow has a supply overhang however, Park Royal is short on quality stock. Capita Symonds is advising SWIP/Goya’s on its speculative development at Central Park in Park Royal (www.london-centralpark.com) and early occupier interest in the scheme demonstrates that their confidence is well founded. Speculative development is less prevalent in East London although interest is gathering and a c 100,000 sq ft scheme start is predicted over the next 12/18 months by Goya Developments in Canning Town. In terms of development land, we saw more unconditional purchases last year, SWIP (Taplow and Park Royal), La Salle/ Exton Estates at Crawley. Big Box warehouse developers like Roxhill who are well funded could make quite a mark this year with acquisitions. Developers who were active pre recession like Chancerygate are also back busy again with pre-commitments and speculative development. We’re confident rents in Park Royal will tip over £13 per sq ft in 2012 with land and capital values increasing further as well. We are onlyagenham Docks 10/15% off 2006/07 peaks in this location on land values – that gap is already closing.NE • DAGENHAM • RM9 6SA M25 Ford Motor Company Dagenham Dock White Outline Chequers Lane Kuehne + Nagel ASDAelands Retail Park A13 Goresbrook Interchange axa – dagenham central park – park royal, london Capita Symonds are joint agents acting on behalf of AXA on their Capita Symonds are joint agents acting on behalf of SWIP/Goya 21 acre warehouse development site (400,000 sq ft) in Dagenham. on a new multi-unit industrial development (161,372 sq ft) next to Middlesex Hospital Capita Symonds advised on this acquisition S E C U R E Hin 2011. TA N D I N G T O L E T ARDS © Capita Symonds 2012. All rights reserved. The information is for guidance purposes only and represents Capita Symonds’ general views. No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 7wales Industrial & Distribution 2012 market overview Overview Main industrial locations —— Cardiff —— Swansea —— Newport Major motorways —— M4 Nearest freight terminal —— Newport —— Swansea —— Cardiff —— Port Talbot —— Barry Largest employee sectors Examples Labour rates Manufacturing British Aerospace Managers/Senior Officials HGV Drivers Heavy Industry Metal Refining Rate p/hr £15.09 £8.68 Electronics Sony Rate p/a £29,598 £19,950Employment Recent real estate newsThe unemployment rate in Wales stands at 9% and the GVA is —— Speedy Asset Services Ltd has taken 26,083 sq ft£15,145, an increase of 3.18% from the previous year’s £14,664, but (2,423.19 sq m) of industrial space at Unit 47 Portmanmoorstill the lowest in the UK. This is 3.6% of the UK’s total GVA. Road Industrial Estate, Cardiff, on a ten year lease at £91,291 pa, equating to £3.50 psf (£37.67 psm).Property values —— DHL has taken 42,961 sq ft (3,991.21 sq m) of industrial space at unit 3 Tregwilym Industrial Estate, Rogerstone, Town ERV CV LV on a five year lease at £150,000 pa, equating to £3.49 psf Cardiff £5.50 £55.00 £125,000 (£37.58 psm). Swansea £4.50 £50.00 £100,000 —— Protomould Limited has taken unit A1, comprising 25,124 sq ft (2334 sq m) of industrial space at LlantrisantERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre Business Park from Barrington Investments Limited on a 6‑year lease at £88,000 pa, equating to £3.50 psf (£38 psm), subject to a review and an option to break in year three. —— Davenport Leasing has purchased the freehold interest in 54,600 sq ft (5,073 sq m) of industrial space for £875,000 in Ebbw Vale. —— Blywert Beaufort has taken 132,750 sq ft (12,332 sq m) of Unit IP1 and IP 2 industrial space in Imperial Park, Newport on a five year lease at £531,000 pa, equating to £4.00 psf (£43.06 psm).© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 8east midlands Overview Main industrial locations —— Nottingham —— Daventry —— Castle Donnington —— Leicester —— Northampton Major motorways —— M1, A1(M), M11, M6 Nearest freight terminal —— Nottingham —— Daventry Largest employee sectors Examples Labour rates Finance Services Santander Managers/Senior Officials HGV Drivers Manufacturing Toyota Rate p/hr £17.08 £9.94 Retail ASDA Rate p/a £33,964 £25,035Employment Recent real estate newsThe East Midlands has one of the lowest unemployment rates in —— Capita Symonds acted on behalf of Structadene in the salethe UK at 8.2% and a GVA of £18,090 per head. This has increased of 125,000 sq ft (5 acres) of industrial land on Fosse Wayby 3.16% (£17,519) since the previous year, and makes up 6.4% of for £2,475,000.the total UK GVA. —— POS Direct Ltd has taken 70,110 sq ft (6,513.43 sq m) of industrial space at Unit 3 Radar Road, Leicester on a newProperty values lease at £333,023 pa, equating to £4.75 psf (£51.13 psm). —— Carlsberg UK Ltd has taken 132,622 sq ft (12,320.99 sq m) Town ERV CV LV of industrial space at the former Accuride International Derby £5.00 £50.00 £140,000 site in Northampton on a six month lease at £596,799 pa, Leicester £5.50 £60.00 £200,000 equating to £4.50 psf (£48.44 psm). Nottingham £5.50 £55.00 £150,000 —— Meomi Ltd has taken 46,150 sq ft (4,287 sq m) of ground‑floor industrial space in Dabell Avenue,ERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre Nottingham, from Property Alliance Group Ltd on a ten‑year lease at £180,000 pa, equating to £3.90 psf (£41.98 psm), subject to a rent review and a tenants option to break in year five. —— Assured Logistics has taken 212,500 sq ft (19,742 sq m) of industrial space within unit 2, phase 3 Max Park, Corby, on a five‑year lease at £956,250 pa, equating to £4.50 psf (£48.44 psm).© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 9standard life – erithCapita Symonds has been instructed on a 97,000 sq ft warehousefacility in Erith on a 6.25 acre site to let or sell. sappi – blackburn Capita Symonds acted on behalf of Sappi in the disposal of their 118 acres of land, including 500,000 sq ft of buildings in Blackburn for c. £5,000,000 (net). Industrial & Distribution We saw some activity last year with more land banking and 2012 market overview speculative purchasing of large former industrial sites. This was mainly by developers and venture capitalists. A representative deal land banks and mixed would be Capita Symonds sale of the former Sappi Mill in Blackburn to Aeternum Capital. There are a number of other buyers who are use development looking for these types of sites across the country now who are prepared to pay better than ‘distress’pricing where there is genuine hope value for alternative uses. Underpinning this interest are the Andrew Smith – Director, Industrial Agency fundamentals of population increase and a shortage of housing. A ‘beyond London’ housing recovery will come through at some point and sentiment is definitely shifting towards the value opportunity in sites which have the ability to play a part. © Capita Symonds 2012. All rights reserved. The information is for guidance purposes only and represents Capita Symonds’ general views. No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 10west midlands Overview Main industrial locations —— Birmingham —— Coventry —— Stoke‑on‑Trent Major motorways —— M1, M5, M40, M6, M42 Nearest freight terminal —— Birmingham Largest employee sectors Examples Labour rates Manufacturing TATA Managers/Senior Officials HGV Drivers Financial, Business & Prof Services HSBC Rate p/hr £17.38 £9.90 Retail Tesco Rate p/a £33,541 £25,269Employment Recent real estate newsUnemployment in the West Midlands currently stands at 9.3% as —— Inkfish Services Ltd. has taken 56,459 sq ft (5,245.21 sq m)of 2011. This is third highest and is way above the UK average of of industrial space at Unit 25 Prologis Park, Coventry on8.4%. It is, however, the only region to improve its unemployment a seven year lease at £296,410 pa, equating to £5.25 psfrate since last year (9.8%). GVA per head, as of 2010, stood at (£56.51 psm).£17,060. This is a 2.68% increase since 2009, when it was 16,602. —— Pointbid UK Ltd has taken 58,609 sq ft (5,444.95 sq m) ofThis amounts to 7.3% of the UK total. industrial space within Unit 3 Meteor Park, Birmingham, from SEGRO Plc on a five‑year lease at £281,323 pa,Property values equating to £4.80 psf (£51.67 psm). —— HSD Ltd has taken 41,750 sq ft (3878.70 sq m) of industrial Town ERV CV LV space within unit 6 Kingsbury Business Park, Sutton Birmingham £5.75 £75.00 £250,000 Coldfield from Scottish Widows Investment Property Trust Coventry £5.50 £80.00 £275,000 on a five‑year lease at £187,875 pa, equating to £4.50 psf Daventry £5.25 £65.00 £260,000 (£48.44 psm), subject to a tenant only option to break in year two. Northampton £5.75 £75.00 £300,000 —— An undisclosed tenant has taken 120,735 sq ft Rugby £5.50 £65.00 £225,000 (11,217 sq m) of industrial space at Hams Hall Distribution Stafford £5.25 £60.00 £150,000 Park, Coleshill, on a new lease at £573,491 pa, equating toERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre £4.75 psf (£51.31 psm). —— BES Ltd has taken 77,317 sq ft (7,182.98 sq m) of industrial space at Unit 12 Junction 6 Industrial Park, Birmingham, from Prupim on a 10‑year lease at £394,317 pa, equating to £5.10 psf (£54.90 psm), subject to a rent review in year five.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 11north west england Overview Main industrial locations —— Liverpool —— Manchester —— Preston Major motorways —— M6, M60, M56 Nearest freight terminal —— Liverpool —— Crewe (Basford Hall) Largest employee sectors Examples Labour rates IT Services IBM Managers/Senior Officials HGV Drivers Retail ASDA Rate p/hr £17.15 £9.70 Chemicals/Pharmaceuticals British Nuclear Fuels PLC Rate p/a £32,883 £24,624Employment Recent real estate newsUnemployment in the North West has seen a relatively sharp rise of —— Capita Symonds acted on behalf of Sappi in the disposal offrom last years figure of 7.7% to 9.3%. GVA is £17,381 per head, an their 118 acres of land, including 500,000 sq ft of buildingsincrease of 2.86% since the previous year. The region contributes in Blackburn for c. £5,000,000 (net).9.5% towards the UK’s total of £1.301bn. —— Idem Safety Switches Ltd has purchased the freehold interest in 42,159 sq ft (3916.70 sq m) of industrial/Property values warehouse space on Ormside Close, Wigan, for £620,000 from Rockwell Automation Ltd. Town ERV CV LV —— Bibby Logistics Ltd has taken 53,174 sq ft (4,940 sq m) Liverpool £5.00 £65.00 £120,000 of ground‑floor industrial/warehouse space, within the Manchester £6.00 £75.00 £225,000 Distribution Premises on Wynne Avenue, Swinton on a Skelmersdale £5.25 £65.00 £140,000 five‑year lease at £110,000 pa, equating to £2.07 psf (£22.27 psm), subject to an option to break at the end of Stoke‑on‑Trent £5.00 £55.00 £100,000 year three.ERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre —— Cellular Systems Ltd has taken 41,100 sq ft (3,818.31 sq m) of industrial space within Unit 2 Easter Park, Widnes, from Easter Group Ltd on a new lease at £165,000 pa, equating to £4.01 psf (£43.21 psm). —— Vitesse Mailing Ltd has taken 43,559 sq ft (4,047 sq m) of industrial/warehouse space within Units 1, 2 and 3 Parker Street Industrial Estate, Preston, on a 4‑year lease at £65,000 pa, equating to £1.49 psf (£16.06 psm). —— Holchem Laboratories Ltd has purchased the freehold interest in 92,826 sq ft (8,624 sq m) of industrial space in Gateway House, Bury, from Imperial Tobacco Pension Trustees Ltd for £2,500,000.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 12 Industrial & Distribution Those for and against the Olympics are likely to continue trading 2012 market overview blows for sometime yet. What’s not really up for debate though is the extent to which the fundamentals of the industrial market haveeast london – changed. It’s a massive shift. To begin with, over 250 acres of industrial land were lost toone to watch the Olympic development. Then there’s the infrastructure improvements and broader inward investment to the area. Westfield, Stratford may take the headlines for now but behindJames Shillabeer – Associate Director, Industrial Agency it there is a much broader re-structure underway across the East London economy. Residents and businesses are moving in who wouldn’t have stopped to take a look at the area a decade ago. All this change is good for the industrial market. As far as existing stock goes there is a broader demand pool to tap into. Capita Symonds has just been instructed to market the former Royal Mail Group facility at Bromley by Bow and we’re confident of high demand from the combination of new entrants to the market post Olympics and the solid base of logistics businesses attracted by the fundamentals. It is these characteristics which are behind the emergence of a number sites now primed for industrial and warehousing development across the size spectrum. Not a great deal of commitment to develop speculatively yet but sentiment is definitely shifting. For the record, we’re big fans of the Olympics and have been working on behalf of one of the host councils, The London Borough of Newham to lease out some of their assets for the duration of the Games. Huge demand and an interesting insight into the requirements of the Olympic Committees (NOC’s), contractors and corporates. ELMS ELIZABETH WAY • HARLOW • ESSEX CM19 5BDroyal mail – bromley by bow pitney bowes – harlow Owner Occupier/Redevelopment Opportunity 13.93 acres (5.64 hectares) with 246,974 sq ft (22,943 sq m) of office /industrial buildingsCapita Symonds have been instructed to dispose of Royal Mail’s Capita Symonds have been instructed on the disposal of Pitney Bowes www.elms-park.co.uk acre site in Harlow, comprising of 106,000 sq ft of office spaceDistribution Warehouse in Bromley By Bow. The warehouse is 13.94 FOR183,740 sq ft situated on an 11 acre site. and an additional 146,000 sq ft warehouse/factory facility. The site is currently under offer.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 13yorkshire/humberside Overview Main industrial locations —— Doncaster —— Leeds —— Hull Major motorways —— M6, A1 (M) Nearest freight terminal —— ingston upon Hull K —— Grimsby Largest employee sectors Examples Labour rates Financial Services First Direct Managers/Senior Officials HGV Drivers Telecommunication British Telecom Rate p/hr £16.77 £10.12 Manufacturing Carlton Brick Rate p/a £33,024 £25,739Employment —— Kingspan Renewables has taken 65,036 sq ftUnemployment in Yorkshire & Humberside is one of the highest (6,041.84 sq m) industrial/warehouse space within Unit 5in the UK at 10.1%. The GVA per per head is £16,917, which is an Dearne Mills from F&C REIT Asset Management Ltd on aincrease of 2.39% since the previous figure of £16,512, contributing rolling one year lease at £160,000 per annum, equating to7.0% of the UK’s total. £2.46 psf (£26.48 psm). —— TNT has taken 61,768 sq ft (5,738 sq m) of industrial floorProperty values space at Stadium Gate in Leeds from Endless Llp on a five year lease at £308,840 pa, equating to £5 psf (£54 psm). Town ERV CV LV —— Morgan Sindall PLC has taken 70,200 sq ft (6,521 sq m) of industrial space on Old Run Road in Leeds from F&C REIT Bradford £5.50 £55.00 £175,000 on a three year lease at £298,350 pa, equating to £4.25 psf Doncaster £4.75 £45.00 £100,000 (£45.75 psm), they have an option to break after 18 months. Leeds £6.00 £65.00 £200,000 —— Alumasc has taken 48,368 sq ft (4,494 sq m) of industrial Sheffield £5.00 £55.00 £130,000 space within unit 1 Potter Grange Industrial Estate,ERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre Goole, from Ashtenne Industrial Fund Ltd Partnership on a three‑year lease at £160,000 pa, equating to £3.31 psf (£35.61 psm).Recent real estate news—— Capita Symonds acted on behalf of Capita Group in the letting of 160,000 sq ft in Wetherby to Lindam in 2011 at a passing rent of £4.50 per sq ft on a 7 year lease (no breaks).—— Esterform Packaging Ltd has taken 99,652 sq ft (9,257 sq m) of industrial space on Royds Farm Road, Leeds in a sale and leaseback transaction on a 20 year lease at £431,820 pa, equating to £4.33 psf (£46.65 psm), subject to a rent review every five years.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 14north east england Overview Main industrial locations —— Newcastle‑upon‑Tyne —— Middlesbrough —— Sunderland Major motorways —— M6, M1 Nearest freight terminal —— Newcastle‑upon‑Tyne —— Carlisle (Ringmoor) —— Kingston upon Hull Largest employee sectors Examples Labour rates Retail Tesco Managers/Senior Officials HGV Drivers Finance Services Virgin Rate p/hr £16.49 £9.09 Manufacturing Scottish & Newcastle Rate p/a £32,544 £20,540 BreweriesEmployment Recent real estate newsThe North East has the highest unemployment rate in the UK, —— Doncaster Paralloy Ltd has taken 44,540 sq ft (4,138 sq m)at 11.2%, significantly greater than the UK average of 8.4%, this of ground floor industrial space within Unit 1 Cassel Court,has increased from 10.2% in 2010. Aside from Wales, it also has Stockton on Tee, from PBJ Property Services on a one yearthe lowest GVA per head, currently at £15,744. This is an increase lease at £120,000 pa all inclusive, equating to £5.39 psfof 2.79% since 2009 (£15,304). This area of the UK has been (£58.00 psm).significantly hit by the recession, with many large‑industries —— Metnor Construction has taken 53,305 sq ft (4,952 sq m)choosing to relocate or downsize. of industrial space at Unit 8 Team Valley Trading Estate, Gateshead, from Olnato Ltd for a six month term on atProperty values £75,000 pa, equating to £1.40 psf (£15 psm). —— Vantec Limited has taken 70,000 sq ft (6,503 sq m) of Town ERV CV LV industrial space at Davy Drive, Peterlee, from BHK (UK) Newcastle‑upon‑Tyne £5.25 £50.00 £110,000 Ltd on a three year, all inclusive lease at £250,000 pa, equating to £3.57 psf (£38.44 psm), subject to an annualERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre break clause. —— Caterpillar (UK) Ltd has taken 68,521 (6,366 sq m) of industrial space from Grouphomesafe at Unit A Peterlee North West Industrial Estate, on assignment of an existing lease expiring in April 2018 at a passing rent of £236,000 pa, equating to £3.44 psf (£37.07 psm). —— Tinsley Special Products has taken 58,629 sq ft (5,446.81 sq m) of ground‑floor industrial space from Better Properties Ltd on an eighteen month lease at £60,000 pa, equating to £1.02 psf (£11.02 psm).© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 15 Industrial & Distribution 2012 market overviewpoor gradewill struggleAndrew Smith – Director, Industrial AgencySecondary property of sub-standard specification is continuingto struggle. Receivership properties in particular are at risk ofsliding into complete obsolecence unless someone takes control.It is a double edged sword, the receivers and administrators areconstrained in what they can invest to improve the lettability ormarketability of the property on a short term basis let alone developa longer term asset plan .Manufacturing is continuing to surge, SME’s have been one ofthe strongest emerging sectors from the recession and have goneabout reinventing themselves and adding value to the supply chainin manufacturing. 5 years ago the manufacturing cost differentialbetween the UK and China was 50%. Recent reports suggestthe gap has closed to 15%. Put time and risk into the equationand its clear why competitive advantage is swinging back for UKmanufacturers. Whilst warehousing still dominates this is an areawhich is seeing much more activity with demand. Landlords justneed to have faith in these organisations and their covenants. Industrial & Distribution 2012 market overview hotspot’s north Andrew Smith – Director, Industrial Agency Aberdeen remains a hot spot with rents pushing up to £10 per sq ft on small industrial stock. The growth of the oil industry and the resurgence of new companies into Aberdeen make this one of the biggest growth markets in the country and we cannot see it slowing up for some time unless oil prices fall back. There also seem to be other spots across the North West which we are seeing on certain requirements we have for clients. There is a real struggle for good modern stock. Therefore good refurbished ‘ready to go’ modern stock will see good appetite from occupiers with potentially reduced incentives and the possibility of growing rents.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 16scotland Overview Main industrial locations —— West Edinburgh —— Aberdeen —— Newbridge —— Eurocentral —— Livingston —— East Kilbride —— Glenrothes —— Hillingdon —— Grangemouth —— Cambuslang Major motorways —— M8, M9, M80, M90, M74 Nearest freight terminal —— Grangemouth —— Aberdeen —— Leith —— Greenock Largest employee sectors Examples Labour rates Financial Services RBS Managers/Senior Officials HGV Drivers Health Education NHS Rate p/hr £18.15 £9.65 Energy Scottish Power Rate p/a £35,500 £24,035Employment —— Group Ltd has taken 25,833 sq ft (2,399.96 sq m) ofThe Scottish unemployment rate is 8.6%, which is marginally more industrial space at Unit 5 Kingsthorne Park, Livingston,than the UK average. The GVA per head is the third highest in the on a new five‑year lease at £115,000 pa, equating tocountry, at £20,220, and has increased by 2.3% (previous figure £4.45 psf (£47.92 psm) from Ashtenne Industrial Fund Ltd£19,775). Scotland contributes an 8.3% share of the total UK GVA. Partnership. —— Thornbidge Sawmills Ltd has taken 20,125 sq ftProperty values (1,878 sq m) of industrial space at 58 Seafield Road, Inverness, from Tenon Group SIPP on a new 10‑year lease at Town ERV CV LV £90,000 pa, equating to £4.47 psf (£48.14 psm). —— SPD Print Solutions has taken 21,790 sq ft (2,024 sq m) Aberdeen £9.00 £110.00 £500,000 of industrial space at Block 20 Units 3 & 4 Cambuslang Edinburgh £6.50 £80.00 £210,000 Investment Park, Glasgow, from Buccleuch Property Glasgow £6.25 £75.00 £170,000 on a 10 year lease at £87,160 pa, equating to £4.00 psfERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre (£43.06 psm). —— Vion Food Group Limited has taken 123,996 sq ft (11,519 sq m) of industrial space at 5 Royston Road, Livingston, on a new lease at £200,000 pa, equating toRecent real estate news £1.61 psf (£17.36 psm).—— Capita Symonds acted on behalf of Emerson Electric in —— Trespass has taken 45,000 sq ft (4,180.64 sq m) of acquiring three sites in Aberdeen with rents ranging from industrial space within Unit 1Bucanan Park, Stepps, from £8.00‑£9.00 psf. Catalyst Capital on a one year lease at £63,000 pa,—— Eddie Stobart Group Ltd has taken 67,689 sq ft (6,289 sq equating to £1.40 psf (£15.07 psm). m) of industrial space at 6 Brittain Way, Bellshill on a 15 year lease at £389,212 pa, equating to 5.75 psf (£61.89 psm).© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 17appendixERV Based on 10,000 sq ft brand new unit in a prime location, with 45-50% site cover and 10% office content, and a lease term of 5‑10 years.CV Based on 10,000 sq ft brand new unit in a prime location with 45-50% site cover and 10% office content.Land Value Based on land with an unrestricted B1(c), B2, & B8 planning consent with a 45-50% site cover and in a prime location. Also based on no abnormal cost for any environmental issues, s.106 committments or site levelling.GVA Gross Value Added.A map providing an overview of the GVA per head for the UK industrial regions is below. These figures have been explainedin more depth throughout the document. < 16 16 ‑ 18 > 18 GVA per head £’000, 2010 scotland 20.2 % Change in GVA 2008-2010 1.13 north east 15.7 0.45 yorshire/humberside 16.9 -0.56 17.4 north west 0.21 east midlands 18.1 0.76 15.1 wales east 19.0 0.15 ‑1.57 17.1 west midlands london 35.0 -0.49 0.18 18.7 south west south east 21.9 0.34 0.3© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 18uk distribution motorway map MOTORWAY MAP of ENGLAND, SCOTLAND and WALES Perth West Perth East Perth South Bridge of Earn Inspired by Dunblane Stirling North Burnside HARRY BECK’S Milnathort M9 Stirling South Kinross LONDON UNDERGROUND MAP M90 Ballingry M9 Kelty © Copyright 2005, 2007, 2008 G Higgins Kincardine Bridge Dunfermline North www.motorwaymap.co.uk M80 Dunfermline M876 South Cowdenbeath Printed by The Map Centre, Hereford www.themapcentre.com V3 Falkirk Stenhousemuir Grangemouth Inverkeithing Bonnybridge M80 Cumbernauld Polmont M9 North Linlithgow Kirkliston Stepps Philpstoun Erskine Robroyston M80 M898 Braehead M73 Cumbernauld South Bridge Paisley Kinning Gallow- Gartham- Gartcosh M9 Newbridge West Paisley Hillington Ibrox Park Anderston Cowcaddens gate Riddrie lock Newhouse Whitburn Livingston M8 M8 M8 M8 M8 Langbank Linwood Glasgow Renfrew Govan Laurieston Charing Garnet- Springburn Ruchazie Easter- Baillieston Shotts Bathgate M8 Edinburgh Dennistoun  Airport Cross hill Rd house Dumbreck M73 Pollok Rutherglen Broomhouse GLASGOW Great North Rd Thornliebank M74 Cambuslang Jesmond Rd Bellshill Crookfur A167(M) Camden St NEWCASTLE M77 Newton Mearns Hamilton upon TYNE Manors Kingswell Larkhall North Tyne Bridge Fenwick Larkhall South Kilmarnock Kirkmuirhill M74 Monkton Lesmahagow A194(M) Pelaw Coalburn Washington North Uddington Birtley Abington Washington South Crawford Moffat A195(M) Chester-le-Street Johnstonebridge Bowburn Lockerbie North A1(M) Sedgefield A74(M) Lockerbie South Newton Aycliffe Ecclefechan Darlington North Annan Darlington South Kirkpatrick Fleming Gretna A66(M) Barton Carlisle North Dishforth M6 Carlisle East Boroughbridge Carlisle South A1(M) Knaresborough Lazonby Walshford Penrith Marsh Ln Wetherby Shap Regent St Tebay Vicar Ln Kendal A64(M) A1(M) Aberford Carnforth M65 Colne Clay Pit Ln LEEDS North Kirkby Lonsdale Nelson Micklefield A58(M) Garforth East Carnforth East Brierfield Woodhouse Ln A601(M) Dewsbury Rd Garforth West Lancaster North Burnley North Westgate Hunslet Belle Isle M1 M6 Lancaster South Burnley West Wakefield South Milford Blackpool Fulwood Edenfield Rd Leeds East Hapton Wellington St Holbeck M66 Summerseat M621 Woodlesford Kirkham M55 Padiham Holbeck West Ribbleton Bradford Accrington Bury Rochdale Elland Rd A1(M) Preston Blackburn East Hollins A627(M) Bierley M606 M1 North Lower Darwen Heywood Beeston Oulton Castleford Whitley Goole Cave Milnrow Outlane Brighouse Lofthouse M61 Blackburn South M62 M6 Prestwich M62 M62 M62 Feniscowles Denshaw Huddersfield Morley Normanton Howden Bamber Bridge M60 Crumpsall Cleckheaton Gildersome Pontefract Clayton Farnworth Middleton North Ardsley Thorne Green Bolton Middleton M65 M61 Clifton South Oldham North Wakefield M18 M181 Scunthorpe Lostock Hall Green Crowle Elsham Chorley New Moston Leyland Horwich Atherton Crigglestone Worsley Walkden Adwick- M180 Oldham South le-Street Hatfield Scawby Eccles Darton Standish M602 MANCHESTER Audenshaw M1 Bentley Woodhouse Peel Bridgewater Way Barnsley Skelmersdale Green Salford Denton Hyde Warmsworth Doncaster East Medlock St Maghull West Wigan M62 Trafford Hoyland M58 Centre Cambridge St A1(M) Doncaster South Aintree Risley Upper Brook St M67 Chapeltown Bryn A57(M) London Rd Hyde Mottram Ormskirk Skelmersdale Trafford Park Bredbury West Kirkby East Ashton in Makerfield Sheffield North Southdene Knowsley M6 Haydock A6144(M) Stretford Bredbury West Huyton with Roby SHEFFIELD M18 Blyth M57 Prescot Winwick Carrington Sale Stockport East Rotherham LIVERPOOL Great Sankey West Didsbury Stockport West Maltby M60 Cheadle East Gatley M62 Roby Widnes M62 Warrington Speke North Cheadle West Wythenshawe Sheffield East Warrington East Northenden Staveley M56 Newall Green Chesterfield M53  Wallasey Manchester Airport Sutton-in-Ashfield Bidston M6 Altrincham East Annesley Woodhouse Prenton Altrincham West Bebington Rostherne Nottingham Hooton Lymm Long Eaton M1 Eastham Knutsford Holmes Chapel Castle Donington Overpool Stretton Ellesmere Port North M56 Sandbach Kegworth Daresbury Crewe  Ellesmere Port East Runcorn East Midlands Airport Stoke-on-Trent Little Stanney Elton M6 Measham Stafford North M42 Loughborough Peterborough Saughall Tamworth East Chester Coalville Yaxley Stafford South Cannock Burnt- Lichfield Tamworth East wood West M6 West Lea Marston A1(M) Cannock West Leicester West Sawtry Toll Curdworth Wolver- Wellington Telford Shifnal hampton Cannock South Lichfield Tamworth Huntingdon East South Leicester South Alconbury M54 Walsall Gravelly M42 M69 M1 Hadley Albrighton Feather- Great stone M6 Barr Hill Sapcote M6 Hinckley Lutterworth Wednesbury M6 Coventry Rugby Catthorpe West Bromwich Stechford M6 Crick Aston Coleshill  Oldbury N.E.C. M45 A38(M) Coventry Stotfold Cambridge North West Halesowen BIRMINGHAM East Northampton West M5 Solihull Daventry Northampton Letchworth Cambridge West Rubery M42 Shirley Northampton South Cambridge South West Alvechurch Stevenage North Milton Keynes Cambridge South Stevenage South M42 Hockley Heath M1 Woburn Bromsgrove Wythall Warwick Toddington Welwyn M11 Duxford Droitwich Luton Luton Great Chesterford  Royal Leamington Spa West Welwyn G. City Airport Worcester North M40 Royal Leamington Spa East A1(M) Stanborough Gaydon Bishop’s Stortford Worcester South Banbury Harpenden Hatfield  Newent Twyning St Albans Stansted Airport Strensham Upper Heyford Hemel Hempstead M10 Hatfield Potter’s Waltham Harlow South Bar Abbey Ross- Ledbury M50 Bicester London Tewkesbury Waterstock Colney Brentwood on-Wye Cheshunt Cheltenham North Chiswell South Upminster Thame King’s Green Mimms Cheltenham Chinnor Oxford Langley Bricket Wood South Ockenden Stokenchurch Watford East Loughton Gloucester Chorleywood West Thurrock M5 High Wycombe Elstree M11 Maidenhead West Watford Woodford Gloucester South Loudwater Maple Maidenhead Cross M25 North Mill Hill Beaconsfield M1 Brent Cross Dartford Crossing Stroud A404(M) South West Uxbridge Maidenhead M48 Thornbury South M40 Baglan Chepstow Aust West Capel Swansea Swansea Margam Cardiff Chipping Swindon Reading Reading Dartford Hendre West North Neath Aberavon Taibach South Bridgend Llantrisant West Rogerstone Malpas Langstone Sodbury West Hungerford West East A308(M) Slough Langley West Drayton Brentford LONDON Faversham M4 M4 M4 M4 Rochester Rainham East M2 Pontardulais Morriston Llansamlet Briton Margam Pyle Pencoed St Fagans Cardiff Bassaleg Newport Newport Magor Chippenham Swindon Newbury Reading M4 Slough Hayes Chiswick Darenth Ferry Port North East West East Patchway East South A329(M) M25 Strood Blue Bell Sitting- Faversham Talbot Frenchay Stanwell Heathrow Hill bourne  Over Bracknell Airport Swanley A48(M) St Mellons Stapleton M49 M32 Staines BRISTOL Sunbury Chelsfield Bagshot Wrotham Addlestone Farnborough M25 Coulsden M20 Ashford Avonmouth Reigate Aylesford Maidstone North Hythe Folkestone Cove Cobham M26 M20 Portishead Hook Leatherhead Godstone Borough West Maidstone Maidstone Ashford Channel Folkestone Clevedon Basingstoke Green Malling North East East Tunnel West Weston-super-Mare Basingstoke West Sevenoaks Gatwick  Burnham-on-Sea North Waltham M3 Airport Three Bridges Winchester East Crawley Bridgwater North Winchester South M23 Crawley South Bridgwater South Twyford Taunton Eastleigh Wellington Upton Chandlers Ford M5 Tiverton Cadnam M27  Cullompton Southampton Airport Totton Southampton Hedge End  Exeter Airport KEY Nursling Bursledon London Orbital Exeter East M271 Locks Heath Redbridge M27 Kent Exeter South Fareham Motorway Wallington South Coast Purbrook Horndean M90 Motorway number London, Bristol & South Wales A3(M) Motorway junction, with access to and/or Eastern Hilsea Havant Waterlooville Catherington Cowdenbeath Portsmouth from non-motorway network Northern M275 Other road London & South Midlands Motorway interchange, no access to or from North Western non-motorway network South Western Motorway interchange, with access to Trans-Pennine and/or from non-motorway network Lancashire & Cheshire Perth South Scottish© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • Industrial & Distribution 2012 market overview 19market structureThe following outlines market structure Additional costsof leases and issues to be aware of. Other cost, other than rent, borne by the tenant include: —— Service charges: This will include a contribution to theRent costs of the overall maintenance of the building – generally—— Payable quarterly in advance. £0.50‑£1.50 per sq ft per annum—— Rental information is expressed as a rent per square foot —— Municipal taxes (rates): typically amount to 40% of rental per annum. levels. These tend to be re‑valued by the Government every—— Space is measured and expressed in gross internal floor five years (latest 2010). The 2012/13 multiplier (Uniform area (which includes columns) with the exception of a Business Rate) is £0.458 handful of landlords that use gross external area. Landlords —— Insurance: the landlord will insure the building and give tenants the right to measure and check their quoted re‑charge the tenant. Contents insured directly by the floor areas and dispute them if different. tenant.—— The market is used to granting rent free periods as —— VAT: where a property is elected for VAT (Value Added Tax), incentives. Depending on the exact market conditions which most buildings are, the costs will be subject to VAT and length of lease, rent free periods can vary from at the prevailing rate which is presently 20%. 0‑18 months plus. Additional costsTerm lengths —— Stamp Duty Land Tax (SDLT): is based on the NPV of theStandard Lease Term: Historically, leases in the UK have been rent over the (continued) lease termlong in length from 20 to 25 years. In the past 10 years, a greater —— Legal Fees: Charged on an hourly basis or fixed bylevel of flexibility can be obtained with normal lease lengths being agreement for time.between 3 and 15 years and with “options to break” built in. —— Agents Fees: typically 7.5‑10% of the first years rentOptions to break: These are likely to be at five yearly intervals (excluding incentives) when appointed.and will be subject to a notice period of 6‑12 months. In certain Tenant improvementscircumstances, depending upon the market conditions, somebreaks will be subject to a penalty payment and may affect the Usually require the formal consent of the landlord. This will usuallyincentives that can be negotiated. include a specific provision requiring the property to be returned to its original condition on determination. Normally a lease can allowRental deposit for non‑structural internal alterations to be carried out with the landlord’s consent. Structural and external alterations will alwaysLandlords will generally require a deposit of 3‑6 months headline require the landlord’s consent (sometimes to be unreasonablyrent, unless UK accounts meet certain financial tests (e.g. profits withheld).in excess of three times rental for the preceding three years).Alternative forms include bank guarantees or personal guarantees. AlienationRent Reviews 5‑yearly, generally upward only to open market The lease will usually allow the tenant to sublease or assignrental value. The government did threaten to introduce legislation its interest subject to various conditions to protect theto impose downward review but withdrew. Market view was lease landlord’s position.lengths had shortened, however this is an issue that is unlikely togo away. Useful InformationRepairs/Reinstatement Code for Leasing Business Premises ‑ advice on a voluntaryTypically leases are granted on a full repairing and insuring basis code for leasing business property.(FRI), placing full responsibility on the tenant for all parts of the www.leasingbusinesspremises.co.ukproperty including structural, internal and external. If the propertyis on an estate, common area maintenance/ security etc will be Capita Symonds Real Estate ‑ available propertiesrecovered via a service charge. Reinstatement (dilapidations): UK www.capitasymonds.co.uk/propertysearchleases contain stringent dilapidation/restoration clauses requiring atenant to return the accommodation to the initial leased condition. Energy Performance Certificates ‑ government linkTenants can reduce this by rewording the lease or including a epc.direct.gov.ukschedule of conditions.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 20 Industrial & Distribution Activity in the big box market is likely to be based largely around Industrial & Distribution 22001122 m a rrkkeett o v eerrv i ieew ma ov v w existing stock and pre-commitments. The internet continues to change the face of the logistics market.big box dilemma In 2011 it grew to about 11% of the total retail market and we will probably see industrial buildings getting bigger. We have seen two& the 3pl challenge large Amazon take ups last year across the country and other large requirements in the pipeline. In London there are now just a handful of buildings overAndrew Smith – Director, Industrial Agency 150,000 sq ft. It’s a reasonable expectation therefore that we’ll see some pre-leasing this year particularly as 2011 was light on activity from the retailers. 3PL’s are struggling to find the right stock which offers modern efficiencies.The lack of development in the last 3 to 4 years has definitely impacted supply to the point where there is a demand challenge looming. New builds are now being considered for the contract led enquires if developers can make the funding work with added lease flexibility. capita group – wetherby Capita Symonds acted on behalf of Capita Group in the letting of 160,000 sq ft in Wetherby to Lindam in 2011 at a passing rent of £4.50 per sq ft on a 7 year lease (no breaks).© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • 21 Industrial & Distribution Engagement with the green agenda among occupiers and investors 2012 2012 market overview continues to increase Energy Performance Certificates (EPCs) are now a mandatory requirement on marketing details. New buildcontinuing to green specifications have increased focus on sustainable features. Its not just about complying chasing a Grade A rating for the sake of it either. At Central Park (www.london-centralpark.com) we areNoel Stevens – Divisional Director, Industrial Agency forecasting up to 35% savings on typical energy costs, a material saving and value add to the marketability and pricing of the scheme. The next potential move by government is to offer incentives in rates and other tax reforms to drive the green agenda harder. trelleborg – trowbridge Capita Symonds, on behalf of Trelleborg, disposed of the 12 acre (100,000 sq ft) former Trelleborg site in Trowbridge for £2.1 million to DTR VMS with completion due in May 2012.© Capita Symonds 2012. All rights reserved.The information is for guidance purposes only and represents Capita Symonds’ general views.No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.
    • switzerland’s largest brownfield site A unique opportunity to acquire one of Switzerland’s largest brownfield sites of 191 acres (77.4 hectares) with 2.45 m sq ft (228,000 sq m) of former industrial buildings. www.swisscentral.com For further information, please contact: Andrew Smith Rob Cass Noel Stevens Director, Agency Director, Investment Divisional Director t +44 (0)207 544 2119 t +44 (0)207 544 2256 t +44 (0)207 544 4217 m +44 (0)7919 326085 m +44 (0)7901 518752 m +44 (0)7766 426646 andrew.smith7@capita.co.uk robert.cass@capita.co.uk noel.stevens@capita.co.uk James Shillabeer Victoria O’Brien Mike Stafford Associate Director Assistant Surveyor Business Development t +44 (0)207 544 2200 t +44 (0)207 544 2048 t +44 (0)207 544 4232 m +44 (0)7792 829921 m +44 (0)7788 303416 m +44 (0)7788 102244 james.shillabeer@capita.co.uk victoria.obrien@capita.co.uk michael.stafford@capita.co.ukThe information provided herein is intended as a guide only and reflects “typical market practice”. Whilst we have no reason to believe that there are any inaccuracies or defects in the information provided in this report, it isconstrained by the use of information and forecasts from other persons and we cannot warrant the accuracy and completeness of such information and forecasts. The information provided in this report is of a general propertymarket nature and is provided for information purposes only.We accept no liability for any loss or damage (including consequential or indirect loss or damage which shall include but not be limited to loss of property or of profit, business revenues or anticipated savings) of any costs, claims,demands, proceedings, expenses or liability of any nature arising directly or indirectly out of use of or access to the information and forecasts of the Report and whether or not arising from our negligence nor that of our employeesor agents.Professional, including legal advice, should be sought for specific transactions. 125 Shaftesbury Avenue, London WC2H 8AD t +44 (0)20 7544 2000 f +44 (0)20 7544 2222 capitasymonds.co.uk/realestate