Builders merchant secures mission critical site for further ten years
Independent builders’ merchants MKM has secured a 10 year lease extension on its 3.6 acre Stoneferry Road, Hull bringing its total lease commitment to 21 years, underlining the mission-critical role the site plays, including acting as the company’s central support base.
By Liza Helps, Property Editor, Logistics Matters
FOUNDED IN Hull in 1995, MKM has grown to 135 branches across the UK and continues to expand. The long-term commitment at Stoneferry Road demonstrates the site’s importance to MKM’s future growth.
MKM took the lease extension from dedicated industrial outdoor storage (IOS) investment manager Modal.
The deal reflects Modal’s approach of working with major institutional IOS occupiers to secure long-term leases on vital operational sites, supporting both tenant stability and portfolio resilience.
Modal Property Partner Matt Sherlock, said: “This agreement with MKM highlights the strength of demand from major occupiers for well-located IOS assets.”
Modal, backed by leading institutional capital, currently owns more than 30 IOS sites across the UK and is targeting the expansion of its portfolio to more than 60 sites by 2026, consolidating its position as the country’s leading IOS platform.
In its latest IOS report Knight Frank noted: “Industrial Outdoor Storage (IOS) is moving from the margins to the mainstream and emerging as a vital component of the UK’s industrial landscape. As occupier requirements diversify and business needs change, IOS is proving an adaptable and cost-effective solution for a wide range of users. Demand is not only sustained but is shifting in profile, with enquiries spanning a broader mix of uses, specifications, and site sizes than ever before.”
Looking just at what is happening in the IOS market for London and the Southeast Knight Frank said that the number of enquiries recorded in the first seven months of 2025 are 31% higher than Jan-July 2024, and come close to matching the total for the whole of 2024, with five months still to go.
The drivers behind the surge in take up for this region included space for construction for storing bulk materials, EV charging, vehicle storage, self storage and container yards, as well as just-in-case stock piling.
Prime rents for IOS sites across the 41 tracked markets in the UK rose by 4.6% in Q2 2025, to reach £2.69 psf, bringing annual growth to 7.8%. This marks a clear slowdown from 17% growth recorded in the full year 2024 and 26% in the year to Q2 2024. The moderation in growth somewhat resonates with the UK’s traditional prime warehouse market, where annually to Q2 2025, UK prime rents for units over 50,000 sq ft grew by 5.1%, slowing from 7.2% in 2024 and 7.8% (year to Q2 2024). However, since warehouse rents already start from a higher base, the moderation in growth appears less pronounced.
