Supply

The supply of warehouse space has decreased dramatically in the last 12 months, falling from the peak of 7.26 million sq ft to 4.24 million sq ft through 22 separate units. Using the five-year average, annual take-up of 3.98 million sq ft this equates to just 1.07 years worth of supply in the region.

Grade A stock now accounts for 47% of all available space, of which 37% has been speculatively developed. In terms of unit count, the supply is skewed towards the smaller size bands, 68% are between 100,000–200,000 sq ft in size, 14% within the 200,000–300,000 sq ft range and 14% within the 300,000–400,000 sq ft range. There is a single unit within the 400,000–500,000 sq ft range and no units above 500,000 sq ft in the region.

Take-up

Take-up in H1 2020 reached 2.64 million sq ft through 12 transactions making it the second best H1 2020 ever recorded. This is 128% above H1 2019 and 56% above the long-term H1 average.

Demand has centred around newly speculatively developed space which has accounted for 44% of take-up in H1 2020. Second hand space has also traded well, reaching 44% of take-up. Occupier preference continues to revolve around better quality units with 56% of space transacted being of Grade A quality.

The largest deal in H1 2020 was Kellogg’s leasing 523,500 sq ft at M6 Major St Helens. It should be noted that roughly 30% of the space transacted in H1 2020 was for short-term deals and involved lease lengths of less than a year.

Additionally, Savills are tracking over 1.5 million sq ft of potential deals that should fall into the second half of the year. Given the current global situation, the market dynamics in the North West are incredibly positive.

Development pipeline

There are currently four units being developed totalling 872,299 sq ft. Three are based at Omega Mountpark Warrington set to reach PC in 2021.

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