Industrial property has become the darling of real estate over the last couple of years with the occupational story predominantly driven by retail demand. According to our latest Big Shed Briefing report, industrial take-up in H1 2019 reached 4.1 million sq ft in the Yorkshire region alone, 55 per cent above the long-term average.

Outside retail there are a whole host of uses for warehouse units, particularly on light industrial estates. Leisure operators are increasingly exploring industrial space as an option for their businesses, with the larger ceiling heights and floor plans lending themselves to a wider range of uses over traditional space.

Providers of climbing walls, gyms, escape rooms, crossfit and ski simulators are all eager to snap up warehouse space for this reason. The Climbing Lab on Kirkstall Industrial Park in Leeds is good example of this, fitting out two units to provide a range of bouldering walls, a café and reception area.

In response to this trend landlords are getting smarter and seeking planning permission for a change of use from industrial to leisure in order to appeal to this growing demand. 

It isn’t just leisure operators that are entering the light industrial market. Food and beverage brands are also seeking space for dark kitchens, butchery space or micro-breweries. Magic Rock Brewing has recently expanded its occupation at Ringway Industrial Estate in Huddersfield. Occupying traditional light industrial space as a brewing/canning facility, Magic Rock Brewing has also fitted out part of the property as a Tap Room, which is open to the public for beer and food tasting.  

Again, the larger floor prints and flexible space are proving an attraction. The fit-out required for these occupiers is often quite high specification and, as such, landlords will often tackle several units at once, creating almost a ‘hub’. 

Small warehouses can also provide incubator space for businesses before they expand or move into bigger premises. For example, a gym owner who is looking for its first unit may well be attracted by the space, but also the low rents. Average industrial rents in Leeds stand at between £5 and £7 per sq ft compared with rents up to £30 per sq ft for office space or traditional retail/leisure parks. These lower rents can be particularly attractive to those that are just starting their businesses. 

The industrial occupational market  has many facets outside the traditional logistics, distribution, manufacturing and trade demand. Industrial estates are changing and diversifying, no longer being a place for trade and opening up to the public.

Further information

Read more: Spotlight: Big Shed Briefing

Search for a commercial property