For years the local Ipswich industrial and logistics market has been characterised by local churn and units of under 20,000 sq ft, with very little to write home about.
However, as the online retail market has continued to grow and demand for distribution centres has skyrocketed, Ipswich’s proximity to the Port of Felixstowe has triggered an industrial revolution of its own.
With easy road access to Ipswich from Felixstowe, this route has since caught the eye of occupiers who are able to take advantage of its location and deliver consumer goods direct from the warehouse to the customer’s front door.
This realisation has in turn sparked an unprecedented level of planned development with a staggering 2 million sq ft of industrial space now in the pipeline along the A14.
This new wave of demand, largely from international firms looking for space, is seeing the industrial landscape change beyond recognition. For example, there is currently a 265,000 sq ft unit under construction at Eastern Gateway on J54 (A14), on the site of the former Sugar Beet Factory, for Italian fruit importer LDH Ladoria. While nearby at Port One an application has been submitted by FDS, a Chinese import company, for a 143,000 sq ft warehouse.
With regards to existing stock, back in 2018 the former Billingtons unit totalling 100,000 sq ft on Europa Way was let to MonuMart, an online retailer importing goods from the Far East.
What’s more, it’s not just the size of the units that are changing. The heights of the buildings in question have also increased dramatically, in some cases from 18ft up to as much as 150 ft, to accommodate these new entrants.
While Ipswich’s port location and cheaper rents compared with other nearby entry points into the UK are, of course, a significant draw, there are also a number of other benefits. For instance, Port One Logistics Park, on J52 (A14), sits opposite Suffolk’s new energy-from-waste incinerator, which should help fulfil the site’s significant power requirements.
In fact, the scheme has already got regulatory approval for up to 10 MW of green energy. Moving forward, this should also help to attract occupiers looking for cold stores, R&D businesses and even data centres, as well as the more traditional retailers and distribution firms.
Unlike a number of other key locations, Ipswich also has access to available labour. With unemployment figures around 60 per cent higher than the UK average, these developments are providing a significant boost to the local economy. Not only supplying jobs, but creating an ecosystem of associated businesses and supply chains.
Once overlooked, Ipswich is now a serious contender for businesses looking for easy access to and from Felixstowe, as well as ease of distribution and fulfilment across the UK. With the spotlight now firmly on Felixstowe, its accolade as ‘The Port of Britain’ has truly been earnt.
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