Supply

Record levels of take-up in 2018 led to a decline in supply within the region but with an increase in speculative development completions supply now stands at 4.66m sq ft across 24 separate units a 16% rise from the start of 2019. The amount of speculatively built units on the market has doubled throughout 2019 and now stands at just over 1m sq ft across six units, the largest being G-Park Doncaster at 278,852 sq ft.

Currently, there are four units on the market above 300,000 sq ft, of which all are second hand, in fact, 79% of the total available space is second hand. The largest unit on the market is Premier Way North which comprises 546,970 sq ft.

Take-up

Following the highest recorded levels of take-up in 2018, the market has performed strongly in 2019, reaching 6.66m sq ft representing a 48% rise above the long-term average. As a stand-alone sub-region, Yorkshire had its best year of take-up at 5.21m sq ft.

Of the 25 transactions recorded in the entire region, 56% were for second hand units, the largest being VBites purchasing the freehold for a food manufacturing facility in Whitley Bay. Given the current supply dynamics, it is difficult to see these proportions changing until more units are delivered speculatively and second hand supply is absorbed.

The largest deal of 2019 saw Wren Kitchens purchase land in Barton-upon-Humber to construct a 910,000 sq ft manufacturing and distribution unit.

Development pipeline

There are currently just two units under construction totalling 751,961 sq ft. The largest unit is Gateway 4 in Doncaster where Trebor Developments are speculatively developing 408,961 sq ft, set to achieve practical completion in Q3 2020.

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