FROM BIG TO SMALL IN 2015 I HAVE LET (OR SOLD) THEM ALL! OVER 900,000FT² OF SPACE DISPOSED OF DURING 2015

Industrial/Warehouse News

It is always interesting at the end of the year to look back on the highs and lows of selling and letting industrial and warehouse space in the East Midlands and see how, on a personal level, the market has performed compared to previous years.

After a record 2014 in which Tim Gilbertson let or sold space of 1,000,000ft² in the industrial and warehouse market throughout Nottinghamshire, Derbyshire and Leicestershire, 2015 was always likely to be a challenging 12 months trying to match those record levels.

Pleasingly however the year has seen continued take up, hampered potentially by the lack of stock and opportunities, but with over 900,000ft² sold or let already and still with a  couple of deals possibly to happen before the end of the year deals concluded by Tim seem likely to mirror that of the previous 12 months.

Tim Gilbertson commented:

“After disposing of 1,000,000ft² of industrial or warehouse space in 2014, the challenge was set in a market with limited available space to try to match or surpass this level.  After a slow start to the year, momentum has certainly picked up during quarters two and three resulting in a number of deals coming to fruition in the last 2 months of the year.  Demand certainly strengthened albeit with some deals frustrated due to the lack of supply rather than lack of demand, but conversely this has had a positive effect on the overall amount of space disposed of during the year as companies have looked again, particularly at the ‘high end’ of the market, to procure new space via design and build solutions.  Indeed, I have exchanged contracts on more design and build deals this year than in any of the previous 20 years I have worked in this sector.

This in itself is a very positive sign for the market as companies are taking steps to relocate by purchasing or taking long term leases on ‘top of the range’ space and this phenomenon is clear throughout my three main counties of work, Nottinghamshire, Derbyshire and Leicestershire.

Existing space continues to move and demand has been such that I have been able to secure lettings or sales from as little as 5,000ft² upwards and these remain just as gratifying as the biggest deal I have completed this year, a design and build letting at Junction 28 of the M1 to Alloga (UK) Limited of just over 220,000ft².

What does 2016 hold?  As ever the honest answer is who knows!   However, the prognosis remains very positive albeit any party looking to purchase or rent a new factory or warehouse in 2016 may well be frustrated by the lack of space and opportunities, which again may see more and more design and build development deals agreed.

I would like to hope that more existing space comes to the market in early 2015 to meet the strong demand we are encountering for both freehold or leasehold manufacturing or distribution space as there are always elements of the market who cannot commit to design and build opportunities and it is finding the properties for those parties to rent or buy during 2016 which will probably be the most difficult conundrum to overcome.  Positivity reigns from most manufacturing and distribution sectors, our challenge therefore is to unearth and market opportunities so that this positive feel throughout the East Midlands can be maintained throughout 2016 and beyond.

I very much hope that any parties looking to sell or let their space in 2016 will give me a call as I can provide glowing commentary of a market in favour of property owners looking to sell or lease their buildings, with demand increasing and competition very thin on the ground.”

For further information or to have a quick chat with Tim Gilbertson initially or arrange to meet and discuss the state of the market, Tim can be contacted on 0115 9507577.