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Industrial/Warehouse News
As we approach 2025, it is a great time to reflect on the last 12 months in the sub-5,000ft² industrial/warehouse sector. Overall, the market has remained resilient despite the political and economic pressures and pleasingly we still found ourselves completing deals and taking on new instructions.
The year started off strong with enquiries showing no signs of slowing down from the previous year. We were successful at Amber Business Centre in Riddings which showcased the demand for small stock as we let over five units and we now have three further units under offer. Across Derbyshire, the sub-5,000ft² industrial/warehouse sector has been underpinned by a lack of small units and particularly those of good quality.
As we got further into the year due to the political and economical uncertainty with the election and budget the market conditions slowed down with businesses of all sizes being careful when making decisions. That being said, there is still a constant demand for sub-5,000ft² units in the heart of Derby and the surrounding areas including Alfreton, Ilkeston & Long Eaton. Most of the enquiries are local occupiers looking for additional space or large space to move to following outgrowing their old warehouse which proves that despite the tough economic climate small businesses are still growing and expanding.
We are beginning to see less stock being brought onto the market towards the end of 2024 which results in rental prices remaining strong and, in some circumstances, even rising as we saw at Amber Business Centre which saw a 1,507ft² unit recently let for £11.00ft² whereas before 2024 we achieved £10.00ft² in the same size units on the estate. Capital values have mostly remained the same as the previous year with new build stock achieving north of £150.00ft2 and secondary units achieving between £100.00ft2 and £120.00ft2.
Further to this, there is a shortage of new build industrial units of this size due to it being hard to source land of 1-2 acres to build schemes of this nature and secondly the economies of scale of building a smaller scheme. The schemes that have been developed have seen strong success however, as FHP have let all of the sub-5,000ft2 units at Headstocks Industrial Estate which offered brand new small units and Wingfield View in Clay Cross where FHP let or sold 19 industrial warehouse units ranging from 2,091ft² to 12,062ft².
Thankfully in 2025 we will see the shortage of new build small industrial units hopefully be further satisfied as our clients are delivering good quality new build industrial/warehouse units in Pinxton and Grassmoor. Pinxton, situated just off J28 of the M1 motorway is offering freehold units that are being built now and in 2025, we will start seeing the steels coming out the ground at The Old Coal Yard in Grassmoor, Chesterfield which will deliver more high quality small industrial units to let.
For further information please contact Harry Gamble on (07398 443 828 / harry.gamble@fhp.co.uk).
ENDS
December 2024