By Liza Helps Property Editor Logistics Matters

TAKE-UP totalled 7.6 million ft2 and was 33% ahead of the 5.7 million ft2 3PL’s typically took per annum prior to Covid (2007-19)

DTRE head of research, data and insights Robert Taylor said: “This does suggest that the retailers were perhaps seeking to satisfy demand in shorter term, less capital intensive 3PL space with greater flexibility over future certainty of demand for space.”

Overall Big Box take-up for 2024 reached 28.6 million ft2, 13% ahead of 2023’s 25.3 million ft2 and 17% ahead of the ‘Pre-Covid’ average (2007-19).

In terms of geographies, the East Midlands dominated take-up accounting for 30% with the supply constrained North West seeing just 2.4 million ft2 of take-up and the lowest level of take-up DTRE have recorded since 2009. Albeit with only 7.9 million ft2 of available standing stock, the North West has the least amount of supply of all the core regions (South East & London 8.8m ft2 West Midlands 8.9m ft2; East Midlands 12.7m ft2; Yorks & Humber 9.3m ft2), and just three new buildings available bigger than 200,000 ft2.

The DTRE Big Box Vacancy rate (all units over 100,000 sq ft) did tick up slightly through the Q4 2024 and now stands at 7.2%, up from 6.9%. This was predominantly due to 1.35 million ft2 of ‘New’/Grade A product coming to the market while there was also an increase in Grade B space of 425,000 ft2. Total supply stands at 54.35 million ft2, up 15% year-on-year.

Looking through 2025, the research noted that the pipeline of modern Grade A product coming forward for 2025 continues to look relatively sparse. DTRE is currently tracking 9.5 million ft2 of speculatively built Big Box (100,000 sq ft +) units that will be completed in 2025, which is down 25% on the annual average of 12.6 million ft2 of new spec development completions seen in each year from 2018 – 2024.

The largest number of new units is set to be delivered in units between 100-200,000 sq ft (16 units) but overall there’s a good spread across the other size ranges with Panattoni’s 770,000 sq ft Panattoni Park Central A1(M) scheme in Harworth and GLP’s MPN761 at Magna Park Lutterworth the two biggest developments scheduled to complete in 2025.

By Liza Helps Property Editor Logistics Matters

BOTH AMAZON and Marks & Spencer have requirements in the region as reported by Logistics Matters earlier this month. https://www.logisticsmatters.co.uk/Etailers-hunt-space-in-Midlands

The facility at Symmetry Park Kettering, which has been pre-let, will consist of 919,323 ft2 of warehouse space with 36,224 ft2 of two storey  offices  including hub and three gatehouses built to target net zero in construction and BREEAM Excellent and an EPC A rating.

The property located on a 52-acre site to the north of the scheme, will have 15m eaves and boast 142  dock and six level access doors. There will be eight Baler/Compactor doors, four van dock doors and three non-inventory doors. There will be parking for 403 HGVs and 750 cars.

Within the building there are plant mezzanines and MHE platforms totalling some 173,879 ft2, however these do not constitute floorspace in the traditional sense as they support equipment and are not traffic generating.

Plans for the office space include HR  offices, a medical area with examination rooms and doctors office, a workers council office and workers meeting room, prayer room and training room as well as general open plan office space.

There will be limited number of solar panels installed at the construction stage because the quantum of panels sought is limited by grid capacity. Additional panels will be installed as and when grid capacity allows. 

The developer is looking to see the facility operational by the first half of 2027.

Joint letting agents for the scheme are DTRE, BNP Paribas Real Estate, and Cushman & Wakefield.

It uses area scanning cameras as key components. With self-developed image processing and deep learning technology, the system can accurately locate parcels in real time. It uses an algorithm to enable barrier-free identification of even difficult-to-detect shipments such as envelopes, waterproof packaging and black packages.

The system's sorting process success rate is said to be over 99%, while the throughput rate is 10,000 parcels/hour for small and 7,200pph for large parcels. Stand 1GA99

For more information, visit www.wayzim.com

The Porter AMR automates inventory movement and navigates the warehouse without any infrastructure changes or heavy manual labor required. With a payload capacity of 1,500kg and built-in sensor systems to recognise pallets, Porter AMR picks and places open or closed pallets directly from the floor. Warehouses and distribution centres can use Porter to fully automate tasks such as cross-dock, putaway and inventory moves as well as collaborative tasks including case picking and replenishment.

Upscaling nearly a decade of automation technology from the company’s Chuck AMR offering, OIA’s patented system-directed software intelligently orchestrates each Porter unit, or a whole fleet of them, and identifies the optimal route for it to take while preventing bottlenecks.

The firm will also showcase Chuck AMRs and its high density OSRS system. Stand 8C77

For more information visit www.ocadointelligentautomation.com

The MIX Pro integrates high-density tote-to-person and shelf-to-person operations, facilitating mixed storage and picking for a wide array of products. It offers double-deep racking up to 12 metres. It has a customisable modular design compatible with various totes and is capable of interfacing with conveyor lines and AMR robots. Stand 1C41

For more information, visit www.mushiny.com

EP's high-voltage forklifts have load capacities ranging from 4 to 25 tons and can achieve speeds of up to 30 km/h.

The XP15 offers a blend of autonomous and manual modes, supporting repetitive transport tasks while maintaining the flexibility of a standard pallet truck. Stand 10F65

For more information, visit www.ep-equipment.com

By Liza Helps Property Editor Logistics Matters

ACCORDING TO latest research from real estate analyst CoStar Group, industrial and  logistics construction starts fell to a 10-year low in 2024, dropping to less than 30 million ft2, 60% below peak levels of 2022 and 2021, and a similar level to 2014.

While build costs have stabilised, higher interest rates, moderating leasing activity and lengthening void periods have deterred some developers.

But stronger tenant demand is expected in the year ahead as the UK’s brighter economic prospects and retail sales growth translate into demand for new facilities.

While net absorption was strongly negative across the industrial sector in 2024, it was positive by around 24 million square feet in warehouses built in the past five years. Occupancy losses meanwhile accelerated in older, less energy-efficient buildings.

The shift to more modern warehouses will likely continue. CoStar’s baseline forecast scenario projects net absorption in newer facilities to exceed completions by around 10 million ft2 in the year ahead, resulting in a six percentage-point drop in vacancy among these newer buildings in 2025. 

Even accounting for projected new completions, such a scenario would leave less than 35 million ft2 of modern warehouse space unoccupied by the end of this year, equivalent to about 1.4 years’ worth of supply based on the absorption of new space last year or 0.9 years when viewed against the three-year average.

Despite last year’s backdrop of softer demand and elevated supply, average new-build rents still rose by 5%, roughly double the rate of inflation.

Given the expected tightening of market conditions in the year ahead, rental growth among modern industrial properties has the potential to surprise on the upside.

By Liza Helps Property Editor Logistics Matters

THE PARTNERSHIP will include the design and construction of grid connected electrical infrastructure, providing power to around five million ft2 of industrial and logistics space at its LEEDS 500, DoncasterNorth and Dynamo Park schemes.

The largest of the three sites, DoncasterNorth, will include one of the UK’s largest available single unit consents in MILLI+ at 1.15 Million sq ft.

Once complete, the networks will be operated by SSE’s Independent Distribution Network Operator (IDNO), Optimal Power Networks.

Prior to the appointment SSE Energy Solutions worked closely with Wilton to help navigate the challenge and complexities of the grid, while ensuring a flexible technical and commercial proposition was developed. During the construction phases the partnership will explore how to support the wider sustainability targets for the sites, working to deliver an optimised energy system for Wilton and its occupiers.

Wilton Developments Managing Director Jason Stowe, said: “One of the key considerations for major I&L schemes, in addition to planning delivery, is power availability. We have worked hard alongside SSE Energy Solutions to formulate a robust and flexible solution for our future occupiers. It will give our prospective occupiers great comfort that a power solution has been formulated and is deliverable.”

SSE Energy Solutions Head of Regeneration Noel Powell, said: " While our immediate priority will be bringing power to the sites, our solution architects will work with the project team to integrate other energy solutions in line with our strategy of producing net zero networks.”

By Liza Helps Property Editor Logistics Matters

LESS THAN 1% of properties in the UK score this accreditation. Canmoor director Tom Maltby noted: “With top-quality, high-end, ESG led design credentials, we have already seen good occupier interest in the site. The availability of additional power to the site is also a top draw for modern occupiers’ needs. We also believe this fills a much-needed gap in the Birmingham market for new high quality mid box warehousing/industrial space.”

The scheme, known as Urban8 , totals 370,149 ft2 and is one of the largest speculatively developed midbox multi-unit schemes in the country

The scheme provides eight units, ranging from 26,000 to 70,000 ft2, set in a green, landscaped environment. The development has achieved BREEAM Outstanding rating, with EPC A ratings throughout, reflecting the ESG focussed design to include large scale roof mounted solar PVs, EV Charging, cycle storage, and sustainable travel options available being situated within a four minutes’ walk of Kings North Station, with regular train services to Birmingham New Street.

Each of the eight units are secure and detached with 24-hour access. The warehouse units provide up to 12.5m clear eaves hight and up to 45m secure service yards, with ample office space provision. XL Power supplies (5MVA on site) are available for each unit, which includes on site generation of more than 37% of energy requirements through low carbon measures.

JLL, Savills and DTRE are letting agents.

As part of its Plan A roadmap to Net Zero by 2040, the retailer has committed to move to low carbon logistics, increased use of new technologies and cleaner fuels. 

Five zero emission battery electric HGVs will operate between M&S’ Clothing & Home distribution centre in Welham Green, and 30 stores across London and the South East, including Oxford Street and Bluewater. The 42-tonne battery electric Renault trucks will directly replace equivalent diesel trucks. The vehicles are delivered under the eFREIGHT 2030 project, part of the UK Government’s zero emission HGV and infrastructure demonstrator programme (ZEHID).

From September, M&S also started taking delivery of 30 new vehicles that run on compressed natural gas for its Clothing & Home business, the first retailer to introduce 6x2 CNGs in the UK. This follows a long-term collaborative trial with IVECO.

The retailer also recently introduced 50 4x2 compressed natural gas vehicles to its Food logistics business Gist. The compressed natural gas lorry cabs are powered by biomethane.

Once these 85 vehicles are in operation, almost 10% of M&S’ total transport fleet will be powered by zero or lower-emission solutions. 

M&S head of group transport Julian Bailey, says: “By trialling new vehicle technologies, we’re able to deliver our products, which are sourced and made with care, to our depots and stores with a lower impact on our planet.”