Supply

The supply of warehouse space for units over 100,000 sq ft currently stands at 5.7m sq ft across 29 separate units representing a 6.2% decrease from 2018.

Grade A stock now accounts for 50% of all available space, of which 42% has been speculatively developed. However, despite the increase in Grade A space which currently stands at 2.8 million sq ft through 13 units, using the long term average for Grade A take-up in the region there is just 1.34 years worth of supply left within the market.

In terms of unit count, the supply in the North West is skewed towards the 100,000–200,000 sq ft size band with 66% of available units being within this size band. There are just two units currently available within the market over 400,000 sq ft.

Take-up

Following the record year seen in 2018, transactional activity for 2019 has declined reaching 3.27 million sq ft through 17 separate deals representing a 9.8% decrease below the five-year average.

The largest deal of the year was Eddie Stobart acquiring 634,910 sq ft at Appleton in Warrington. This is set to be the largest deal within the region in 2019; however, it is currently being held with the Secretary of State for final approval.

In addition, Savills are aware of over 2m sq ft under offer through 10 separate units due to complete H1 2020 highlighting continued occupier demand throughout the region.

Development pipeline

There are currently just two units being developed totalling 263,375 sq ft. The largest is Icon 138 in Manchester totalling 138,375 sq ft. This limited development pipeline may see average rents increase as occupier demand for better quality units limits the supply and thus pushes on rents.

_{Read the articles within Big Shed Briefing below.}