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Industrial/Warehouse News
As 2024 comes to an end we look back on how the Nottinghamshire industrial/distribution market has performed specifically looking at the deals transacted between 5,000ft² and 40,000ft² throughout Nottinghamshire by FHP.
Although 2024 has been a tougher year than others with many factors out of our control such as interest rates, a new government, the budget and a new American President, this sector has remained resilient and transactional. There was a reduction in enquiries compared to other years, however, we found that the parties out there looking tended to be very serious and active in their search.
There is still a lack of supply in the industrial/warehouse sector with very few, if any, speculative developments taking place. Competition tends to be poor quality which in turn allows us to push capital values and rental figures on any good quality new or second hand stock.
The final quarter of 2024 has been particularly slow with the recent budget and uncertainty of how the market will react to these changes especially in relation to taxation and inheritance tax. From our conversations with businesses, now we are approaching the end of the year, they have seen sales bounce up and down and be fairly inconsistent and volatile in 2024 and in turn, we have found that they are thinking more strategically about their business decisions. It is also important to note technological advances and evolving consumer demands and an increased online presence is changing businesses and the way they operate, which again increases the popularity of industrial/warehouse units. Although tougher economically, the changes stated above have led to strong demand for industrial/distribution units especially due to there simply not being enough stock out there (supply chain inefficiencies).
The majority of enquiries in the 5,000ft² – 40,000ft² size range throughout Nottinghamshire is from local and regional businesses, or businesses looking to start up/relocate in the East Midlands to benefit from the locality of Nottinghamshire to the M1 Motorway which services the whole of the UK, the labour pool and cost efficiency with rental and purchase prices for these units, making them attractive for businesses looking to optimise cost.
The story of 2024 is there has been a shortage of good quality industrial stock, especially new build developments due to high land values and build costs. This however, has meant FHP pushing the values of good quality secondary units both to let and for sale. The industrial schemes which have been speculatively built such as Teal Park in Netherfield, Headstocks Business Park in Watnall and Portland Drive in Shirebrook, have all seen huge success with these three estates nearly at full occupation. Therefore, we are encouraging where viable, parties to consider schemes such as these due to the proven success. Strategic locations are still in heavy demand and if units are located in close proximity to major roads they prove popular.
Going into 2025 we have exciting schemes coming out of the ground such as Private Road No.2 in Colwick comprising circa 20,000ft² of small to medium sized units and Access 38 in Sutton in Ashfield where units range from circa 5,000ft² – 30,000ft². Most excitingly on the new Access 38 scheme, we can offer units on a freehold basis which is very much needed in a market where there is very little to buy.
For further information on FHP’s available units on the market, please contact Anthony Barrowcliffe of FHP on 07557 972008 / anthony@fhp.co.uk.