John Sullivan, director, industrial & logistics, Colliers International

1. The North West
Industrial Market
John Sullivan
June 2018

2. North West Take-up
>100,000 sq ft
• Overall 2017 take-up in North West fell short by a third on the previous
record year, with 10.5m sq ft
• 2017 take-up over 100,000 sq ft was 3.4m sq ft, in comparison to 5.7m sq
ft in 2016. However, with a number of large requirements in the market
and new schemes nearing completion, we expect 2018 overall take-up to
be strong
• In the largest industrial letting in 2017 in the North West, tissue
manufacturer Accrol Papers agreed to lease 368,000 sq ft of industrial
space at Orbits, M58 Distribution Centre in Skelmersdale. Amazon also
took 358,578 sq ft at 360 Logistics North

3. North West Take-up by Grade
>100,000 sq ft
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018
Millionsqft
Source: Colliers International
New/Refurbished
Secondary

4. 2017/2018 Notable Deals in North West
>100,000 sq ft
Address City Size (sq ft) Deal Type Rent (Sq.ft) Tenant/Buyer Landlord/Seller
M58 Gillibrands Road Skelmersdale 368,000 Leasehold £3.45 Accrol Papers Ltd Orbit Developments Ltd
360 @ Logistics North Bolton 358,322 Leasehold £5.70 Amazon
Exeter Property Group/First
Industrial
225 Logistics North Bolton 225,000 Leasehold £6.00 Whistl Haworth Estates/M&G
Space 170 Liverpool 170,000 Leasehold £4.25 TJ Hughes Vengrove
Aquila Liverpool 120,000 Leasehold £6.15 Grupo Antolin Barwood Capital/DB Symmetry
Finlan Rd Manchester
110,000 Leasehold £5.25
DOMU Brands Ltd Howard Tenens Associates Ltd
Sigma 110 Blackburn 110,000 Leasehold £6.25 Mardix Accrol Papers Ltd
Source: Colliers International

5. Big Sheds Existing Availability by Grade
>100,000 sq ft
• Big sheds availability has declined by 66% since 2010 in the
North West region
• Existing supply of new/refurbished (units over 100,000 sq ft)
represents circa 1.5 m sq ft and 4.5 m sq ft of second-hand
quality
• The largest speculative warehouses ready to occupy are
Kingsway 216, Rochdale, which offers 216,777 sq ft, Logistics
175, Logistics North, Bolton offering c.175,000 sq ft and L175
Liverpool International Airport also offering 175,000 sq.ft

6. Existing Availability by Grade
(Units over 100,000 sq ft)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018
Millionsqft
Source: Colliers International
Secondary New/Refurb

7. Grade A Existing Availability
>100,000 sq ft
Building Park Total Available Space (SF) Owner Name
K333, Fraser Place, Trafford Park, Manchester 333,562 Encore
Kingsway 216, Kingsway Business Park, Rochdale 216,380 Standard Life Investments
Fraser Place, Trafford Park, Manchester 208,000 L&G
Logistics 175, Logistics North 175,087 M&G Real Estate Ltd
L175, Dakota Drive, Liverpool 175,000 Peel Logistics
H2 Heywood Distribution Park, Pilsworth Rd, Heywood 148,856 Harbert Management Corporation
Acadamy, Knowsley Industrial Park 110,000 Orbit Developments
Link 95, Hareshill Business Park, Heywood 95,000 Aviva
Source: Colliers International

8. North West Industrial Spec Pipeline
>100,000 sq ft
Address Size (sq ft) Status Completion Developer
375 at Logistics North 375,000 U/C Q4 2018 First Panattoni
Mountpark Warrington, Omega 346,000 U/C Q4 2018 Mountpark
Crewe Commercial Park 240,000 U/C Q1 2019 First Panattoni
Venus 200, Knowsley 200,000 U/C Q1 2019 Flintrock/Knowsley Council
Frontier Park, Blackburn 185,895 U/C Q4 2018 Euro Garages
MA6NITUDE 149,000 start on site Sept 2018 Q2 2019 DB Symmetry/Pochin
Evolution, Salford 130,000 U/C Q3 2018 Vengrove/ Barnfield Construction
Q110, Crewe 111,287 U/C Q3 2018 Quorum Developments/Cabot
Liberty Park, Widnes 107,000 start on site in Sept 2018 Q2 2019 Stoford/Liberty Properties
Source: Colliers International

9. 2018 UK Spec Developments
>100,000 sq ft
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
West Midlands East Midlands North West South East Yorkshire and the
Humber
East of England Greater London South West South East
sqft
Source: Colliers International
Existing New Under Construction Planning Consent

10. Active Industrial Occupier Sectors
• Automotive
• Food Distribution
• Food Manufacturing
• Online Retailers
• Medical/Pharmaceutical
• Modular Building
Suppliers
• Hygiene Suppliers
• Self Storage
• Parcel Carriers
• Packaging
Sectors Who is in the Market?
600,000 sq.ft 550,000 sq.ft
550,000 sq.ft
485,000 sq.ft 350,000 sq.ft 375,000 sq.ft
350,000 sq.ft 300,000 sq.ft 250,000 sq.ft

11. Up and Coming Sites in the North West
 Russell Construction - Northern Gateway, Heywood (100 acres) Planning in
place
 Peel Logistics - Port Salford (150 acres) Planning in place
 Bericote - M6 Major, Haydock (90 acres) Planning in place
 Euro Garages - Frontier Park, Blackburn (65 acres) Planning in place
 Stoford/ TPG - ICON, Airport City (55 acres) Planning in place
 Peel Logistics - Land at Jct 23, Haydock (104 acres) Planning Imminent
 Haworth - Wingates, Bolton (294 acres)
 Langtree - Parkside Colliery (250 acres)
 Langtree/First Panatonni - Warrington Interchange (200 acres)
 HINOR - Future Carrington (140 acres)
 DB SYMMETRY/POCHIN - Magnitude, Middlewich (100 acres)
 Quroum Estates - Bredbury Gateway (76 acres)

12. North West Industrial Rents
> 100,000 sq ft
• UK average prime rents for big sheds increased by 4.4% (yoy) to the
national average of £6.59 psf, showing a return to the pre-
recessionary levels.
• Prime rents in North West for units over 100,000 sq plateaued at the
average of £5.74 psf across the main locations, which is now 20%
higher than the 2007 average.
• Manchester and Warrington are, however, expected to see rental
growth from £6.00 psf to £6.26 psf over the course of 2018 due to
continued imbalance between demand and supply.
• Secondary rents for big sheds in the North West region saw 5.9%
uplift the last 12 months, currently averaging £4.50 psf in key
centres. Both Manchester and Warrington’s secondary rents
increased to £5.00 psf plus.

13. North West Average Industrial Rents
>100,000 sq ft
£4.80
£4.38
£4.13 £4.13 £4.13 £4.13
£4.63
£4.88
£5.69 £5.75 £5.75
£3.69
£3.06 £3.06 £3.06 £3.06 £3.06
£3.56
£3.81
£4.25 £4.25
£4.50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
psf
Source: Colliers International
Prime Secondary

14. UK Industrial Rental Forecasts
5.8%
4.4%
2.8%
3.3%
4.0% 4.0%
3.7%
4.2%
2.5%
1.7%
2.2%
2.7% 2.7%
2.4%
2.3%
0.9%
1.0%
1.8%
2.3% 2.4%
1.7%
2017 2018 2019 2020 2021 2022 5-years Annualised
UK Standard Industrials UK Distribution Warehouses All Property

15. COLLIERS INTERNATIONAL
www.colliers.com/uk