No Grade A warehouse space in Scotland

By Liza Helps, Property Editor, Logistics Matters

THE NEWS comes as Savills also reports that there is also no activity from 3PLs or parcel operators in the region which is counter to trends seen across the rest of the UK.

From a supply perspective, there are six units over 100,000 ft2 totalling 1.9 million ft2 of which the 860,892 ft2 former HarperCollins HQ makes up 45% of available stock.

Savills believes that many occupiers will be increasingly concerned about rising power demands to meet future energy needs and the ability to improve environmental performance, especially in advance of mandated carbon net-zero targets. Given the risk of obsolescence and the further reduction of choice, this should see prime rental growth forecasts increase as a result.

Ross Sinclair, director in the industrial agency team at Savills Scotland, comments: “With the existing supply and development pipeline being highly constrained, coupled with key occupational specifics, the build-to-suit (BTS) route appears to be the only viable option for meeting the strong prevailing demand for requirements exceeding 100,000 sq ft. Positively, there are currently an encouraging number of larger enquires which should stimulate such development .”

However, Jonathon Webster, associate director in the industrial agency team at Savills Scotland, noted: “Traditionally, Scotland’s industrial & logistics market has been characterised by smaller units, especially multi-let.

Key clients of Savills, such as Indurent, Mileway and Ribston, continue to invest in the multi-let and mid-box sector. Unlike in the big box market, we have seen a lot of leasing activity on smaller schemes where landlords have spent capital making improvements that have boosted key credentials such as sustainability. The hope is that we will see an increase in both new developments and refurbishment projects in order to continue satisfying requirements from occupiers looking for good quality space in this size bracket.”

The HarperCollins building is being marketed by CBRE.