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Northwest warehouse supply remains tight

05 February 2024

Despite the amount of warehouse space in the Northwest increasing 83% in the past 12 months there is still only a year and a bit’s worth of supply.

By Liza Helps Property Editor Logistics Matters

THE FIGURES come from Savills as part of its Big Shed Briefing review. The company notes that  there is currently some 6.19 million ft2 across 31 buildings over 50,000 ft2 available but that with five year average take up this is equivalent to only 1.13 years' worth of supply.

The vacancy rate remains low at 6.69%, far below the 9.6% witnessed in 2019; however, this is expected to fall to 6.1% by the end of the year.  Not surprisingly Savills also highlights the Northwest as having the largest rental growth of any UK region and forecasts 6.3% per annum over the next five years.

Savills director Jon Atherton, said: “There has been an uptick in the available supply as second-hand space returned to the market; however, many of these units are poor quality or in unsuitable locations for many occupiers. It is also important to note that 79% of total stock in the region does not reach the EPC B or above, a minimum standard increasingly requested by tenants.”

Recent news sees that developers are still keen to bring forward development in the region The Derwent Group acting on behalf of the Albert Gubay Charitable Foundation, has secured planning permission for 117,000 ft2 warehouse space at Glass House Business Park in Wigan.

The consent comprises a 100,000 ft2 stand-alone unit with 17,000 ft2 of multi-let trade counter units.

Commenting on the development, Derwent Group Senior Asset Manager Andrew McCormack, said: “With an acute lack of supply in the market, this Grade A accommodation in Wigan addresses a critical need in the region, enhancing the economic landscape of Wigan and providing businesses with top-tier facilities.

“This is a highly deliverable scheme and we are actively seeking pre-let enquiries with a view to having the stand-alone building ready for a new occupier within 12 months.”

B8 Real Estate and CBRE have been retained as the joint letting agents for the scheme.