Industrial Property Market Overview

Yorkshire - Spring 2016

Key Market Points

Prime Investment Transactions H2 2015

In the second half of 2015, the Yorkshire Industrial Market 20 year pre-let to TK Maxx, Crosspoint,

continued to move forward with good levels of activity in the

distribution sector including both leasing and investment
acquisitions.

Knottingley, sold to TriTax Big Box Reit for

59m reflecting an intial yield of 5.32%.
Evans of Leeds disposed of Millshaw Park

The larger transactions in the region emerged from pre-lets

Industrial Estate to Schroder Real Estate for

to retailers including John Lewis at Logic in Leeds,
22.7m reflecting an initial yield of 7.25%
Poundland in Wakefield and a new 635,000 sq ft
and capital value of 68 per sq ft.
distribution hub for TK Maxx at Crosspoint in Knottingley
Wilton
Developments
sold
a
new
set for completion in 2016.
warehouse let to Fedex for a term of 10
There is a current shortage of available new freehold
years at Connex 45 in Leeds for a price of
buildings in both the mid-market and the larger sector
5m / initial yield of 5.43%.
throughout the region.
A combination of the limited availability for prime buildings

and shortage of investment opportunities are creating a

positive impact on both rental and capital values.
New

schemes are now starting to gain greater

momentum with speculative development including active
progress with ground works and infrastructure on a number
of sites throughout the region including South Yorkshire.
Developers prepared to commit to quality schemes in key
locations can expect strong occupier demand.

Devonshire House, 38 York Place, Leeds, LS1 2ED

T: 0113 245 0550 W: dhp.org.uk / wadepropertyconsultants.co.uk

Yorkshire Industrial Investment Market

Current Market Demand and Supply

2015 saw buoyant demand throughout

There are now very few available buildings in the prime /

the region and almost record yields for

prime single let investments.

new build sector within the region. Whilst pre-lets remain

sought after, this has also led a number of developers to
consider speculative development and commence
construction on site.

The relative shortage of stock for both

single let and multi-let investments has

sustained strong levels of demand from a
variety of investors. We anticipate that
this appetite will continue throughout
2016 due to the constraints on supply and
positive occupier demand.

In particular, there are good levels of demand in the mid-

range sector (40,000100,000 sq ft), not only on the prime

motorway corridors but also in micro markets which cater for
established employment locations such as the north west
Bradford / Shipley / Baildon conurbation.
There is also a distinct current shortage of available new

smaller buildings in the region, and when offered on a

freehold basis, these are particularly popular with occupiers.
There does however remain an adequate supply of lower

grade secondary / tertiary accommodation which remains

available in the market. Not surprisingly, buildings which are
compromised remain available at a discount to new
accommodation.
Development Market Expectations for 2016
Stronger design and build market returning for larger

buildings on serviced & ready to go sites.

Improvement in good quality / refurbished second hand

accommodation due to the higher costs

development and general shortage of supply.

of

new

The supply of available land will continue to be limited,

particularly in the Pennine towns.

A combination of the above trends and healthy levels of

occupier demand should continue to drive rental growth

across the sector.
What we do ...

Prime Freehold Rents / Capital Values

Dove Haigh Phillips and Wade Property Consultants are based in Rental Values 5.50 - 6.00 per sq ft (higher for
central Leeds and cover the Yorkshire and North of England Property
markets with significant strengths in the industrial sector.

small buildings).

We provide a combined service with an emphasis on strategic New Freehold VP Values; 75 - 80 psf (again
development and agency advice together with investment sale and
acquisition strategy. With our combined track record in the industrial
sector we also have the market knowledge to assist with lease
renewals / re-gears, plus comprehensive development appraisal and
valuation advice.

Key contacts; mike.dove@dhp.org.uk / mike.haigh@dhp.org.uk /

jonathan.phillips@dhp.org.uk / jonathan@wadeandcompany.co.uk

premium values for starter units).

Serviced land for sale to occupiers; 300,000 -

325,000 per acre.

Distribution yields sub 5.50%, prime multi let

estates 6.75% - 7.00%.

Devonshire House, 38 York Place, Leeds, LS1 2ED

T: 0113 245 0550 W: dhp.org.uk / wadepropertyconsultants.co.uk