Lack of sites stymies West Yorkshire midbox delivery
A shortage of development-ready land is hindering the delivery of new midbox units across West Yorkshire, despite strong demand from developers and occupiers, according to property advisor Avison Young.
By Liza Helps, Property Editor, Logistics Matters
THE REGION has seen significant take up of mid-box units (typically defined as ranging from 30,000 to 100,000 ft2) following a number of schemes being developed over 2022 and 2023. However, most of these units have now been leased and only a handful remain. The supply of second-hand units is also constrained, with very few being returned to the market.
Demand remains robust and diverse, with interest from occupiers across a wide range of industries and sectors, including manufacturing, warehousing and distribution, demonstrating the vital role that mid-box units play in regional supply chains.
Prime rental levels for mid-box developments have risen to £9.75-10.25 per ft2 driven by demand. This rental growth – alongside stabilising building costs, the lowering cost of finance, and investment yields strengthening – is supporting the viability of development.
Rental growth is not confined to new units but has also increased strongly on second-hand units. However, the key issue holding back the supply of new units is the lack of suitable sites available for purchase, and the time typically needed to secure detailed planning consent.
Avison Young UK Principal, Industrial Rob Oliver, said: “Demand for mid-box space across West Yorkshire remains strong, but the challenge continues to be the availability of development-ready land for the next phase of supply.”
In recent months Network Space Developments has secured detailed planning permission for a 12 unit 152,000 ft2 midbox warehousing and distribution scheme on Newmarket Lane, Wakefield, just off Junction 30 of the M62 motorway. It is one of a very few schemes coming forward I the region.
