2012 UK Industrial And Distribution Market Overview

Industrial &
Distribution
2 0 1 2 market overview

introduction 1
south east england 2
south west england 3
greater london 4
east england 5
prime gets primer and developers build speculatively 6
wales 7
east midlands 8
land banks and mixed use development 9
west midlands 10
north west england 11
east london – one to watch 12
yorkshire/humberside 13
north east england 14
poor grade will struggle 15
hotspot’s north 15
scotland 16
appendix 17
uk distribution motorway map 18
market structure 19
big box dilemma & the 3pl challenge 20
continuing to green 21

Industrial & Distribution
2012 market overview 1

introduction
This is the 5th edition of the Industrial and Distribution Market Overview for the UK and coincides with the 5th anniversary of the onset
of 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 point
for the macro economic situation in the UK. There have been hotspots and winners despite the testing business climate but the healthy
evolution 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 write
the 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 data
around 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 certain
new and established brands which have prospered. At the same time whether trading is good or not, many of the rest are looking at the
components 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 but
behind 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 economic
variations, GVA per head, labour rates and summary of recent news items. There is also an added feature of commentary on the outlook
of 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 structure
and breakdown.

Andrew Smith
Director, Industrial Agency
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.

2

south 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 £25,012

Employment Recent real estate news
Unemployment in the South‑East is 6.3%, an increase of 3.2% —— A Capita Symonds client acquired the 300,000 sq ft
since 2011, however it is still one of the lowest in the country. GVA (10 acre) former Arjo Wiggins site in Dartford for mixed use
per 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 at
Property 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 year
ERV 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.



south west england
Overview
—— Swindon
—— Bristol
—— Plymouth

Major motorways
—— M4, M5

—— Bristol
—— Plymouth

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 £22,531

Employment —— 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 Distribution
per head is £18,669, an increase of 2.6% since 2009. It contributes Park, Bristol, from London & Stamford Property Plc on a
7.7% 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), subject
ERV 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‑year
Recent 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)


4

greater london
Overview
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

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 £26,358

Unemployment in Greater London stands at 10%, one of the —— Capita Symonds acted on behalf of the LDA in letting
highest in the country. It has increased from last years figure of 9%. Sugarhouse, a warehouse in Stratford consisting of
GVA, 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 industrial
the 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 psf
Property 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.



east england
Overview
—— Norwich
—— Ipswich
—— Cambridge

Major motorways
—— M11

—— Felixstowe
—— Harwich Port

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 £25,881

The East of England’s unemployment rate is currently 7%, the third —— Ups Ltd has taken 25,275 sq ft (2,348.12 sq m) of
lowest 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 the
ERV 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.


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 only
agenham 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

ASDA
elands 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



wales
2012 market overview

Overview
—— Cardiff
—— Swansea
—— Newport

Major motorways
—— M4

—— Newport —— Swansea
—— Cardiff —— Port Talbot
—— Barry

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 £19,950

The 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 Portmanmoor
still 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
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 Llantrisant
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).


8

east midlands
Overview
—— Nottingham
—— Daventry
—— Castle Donnington
—— Leicester
—— Northampton

Major motorways
—— M1, A1(M), M11, M6

—— Nottingham
—— Daventry

Finance Services Santander Managers/Senior Officials HGV Drivers
Manufacturing Toyota Rate p/hr £17.08 £9.94
Retail ASDA Rate p/a £33,964 £25,035

The East Midlands has one of the lowest unemployment rates in —— Capita Symonds acted on behalf of Structadene in the sale
the 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 Way
by 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 new
Property 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,
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).


9

standard life – erith

Capita Symonds has been instructed on a 97,000 sq ft warehouse
facility 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.


10

west midlands
Overview
—— Birmingham
—— Coventry
—— Stoke‑on‑Trent

Major motorways
—— M1, M5, M40, M6, M42

—— Birmingham

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 £25,269

Unemployment 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 on
8.4%. It is, however, the only region to improve its unemployment a seven year lease at £296,410 pa, equating to £5.25 psf
rate 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) of
This 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 to
ERV 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.



north west england
Overview
—— Liverpool
—— Manchester
—— Preston

Major motorways
—— M6, M60, M56

—— Liverpool
—— Crewe (Basford Hall)

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 £24,624

Unemployment in the North West has seen a relatively sharp rise of —— Capita Symonds acted on behalf of Sappi in the disposal of
from 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 buildings
increase 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
—— 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.


12

Industrial & Distribution Those for and against the Olympics are likely to continue trading
blows for sometime yet. What’s not really up for debate though is
the extent to which the fundamentals of the industrial market have

east london – changed. It’s a massive shift.
To begin with, over 250 acres of industrial land were lost to

one 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 behind
James 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 5BD

royal 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 buildings
Capita 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 space
Distribution Warehouse in Bromley By Bow. The warehouse is 13.94 FOR
183,740 sq ft situated on an 11 acre site. and an additional 146,000 sq ft warehouse/factory facility. The site is
currently under offer.



yorkshire/humberside
Overview
—— Doncaster
—— Leeds
—— Hull

Major motorways
—— M6, A1 (M)

—— ingston upon Hull
K
—— Grimsby

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 £25,739

Employment —— Kingspan Renewables has taken 65,036 sq ft
Unemployment in Yorkshire & Humberside is one of the highest (6,041.84 sq m) industrial/warehouse space within Unit 5
in 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 a
increase of 2.39% since the previous figure of £16,512, contributing rolling one year lease at £160,000 per annum, equating to
7.0% of the UK’s total. £2.46 psf (£26.48 psm).
—— TNT has taken 61,768 sq ft (5,738 sq m) of industrial floor
Property 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.


14

north east england
Overview
—— Newcastle‑upon‑Tyne
—— Middlesbrough
—— Sunderland

Major motorways
—— M6, M1

—— Newcastle‑upon‑Tyne
—— Carlisle (Ringmoor)
—— Kingston upon Hull

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
Breweries

The 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 year
the lowest GVA per head, currently at £15,744. This is an increase lease at £120,000 pa all inclusive, equating to £5.39 psf
of 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 at
Property 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 annual
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
—— 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


15


poor grade
will struggle
Andrew Smith – Director, Industrial Agency

Secondary property of sub-standard specification is continuing
to struggle. Receivership properties in particular are at risk of
sliding into complete obsolecence unless someone takes control.
It is a double edged sword, the receivers and administrators are
constrained in what they can invest to improve the lettability or
marketability of the property on a short term basis let alone develop
a longer term asset plan .
Manufacturing is continuing to surge, SME’s have been one of
the strongest emerging sectors from the recession and have gone
about reinventing themselves and adding value to the supply chain
in manufacturing. 5 years ago the manufacturing cost differential
between the UK and China was 50%. Recent reports suggest
the gap has closed to 15%. Put time and risk into the equation
and its clear why competitive advantage is swinging back for UK
manufacturers. Whilst warehousing still dominates this is an area
which is seeing much more activity with demand. Landlords just
need to have faith in these organisations and their covenants.

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.


16

scotland
Overview
—— West Edinburgh —— Aberdeen
—— Newbridge —— Eurocentral
—— Livingston —— East Kilbride
—— Glenrothes —— Hillingdon
—— Grangemouth —— Cambuslang

Major motorways
—— M8, M9, M80, M90, M74

—— Grangemouth —— Aberdeen
—— Leith —— Greenock

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 £24,035

Employment —— Group Ltd has taken 25,833 sq ft (2,399.96 sq m) of
The 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 to
country, 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 ft
Property 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 psf
ERV 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 to
Recent 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).


2012 UK Industrial And Distribution Market Overview

2012 UK Industrial And Distribution Market Overview

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Similar to 2012 UK Industrial And Distribution Market Overview

Similar to 2012 UK Industrial And Distribution Market Overview (20)

More from Capita Symonds

More from Capita Symonds (7)

Recently uploaded

Recently uploaded (20)

2012 UK Industrial And Distribution Market Overview