About two million sq ft of large industrial and logistics space will be delivered speculatively across the North West in 2019, the second largest amount in the UK, according to the latest sector research by real estate advisors Colliers International.
The firm’s Spring 2019 Industrial and Logistics Barometer shows 10 so-called ‘Big Box’ units of more than 100,000 sq ft, totalling circa 2.0m sq ft being delivered this year to satiate demand for larger sites from online retailers benefiting from the increase in consumers shopping online.
According to Colliers, the two million sq ft is the second largest amount of speculative industrial and logistics space being delivered in the UK, exceeded only by the East Midlands, where almost 4.1m sq ft is due to be provided in 2019.
The largest scheme in the North West is the Bericote/Hillwoods development at Haydock, spanning 523,000 sq ft and due for completion in June 2019.
Colliers also identified commitments by developers to provide a further eight ‘Big Box’ sites representing about 872,000 sq ft in 2020, with more expected to be announced.
Among the major schemes being delivered in 2020 is Carrington Gateway, a 212,129 sq ft development of six units by HIMOR on a 19-acre site at Carrington, Manchester and due for completion in the first quarter of 2020.
John Sullivan director, industrial and logistics for the North West at the Manchester office of Colliers, said: “The need to address the ongoing imbalance between demand and supply means the market is not being over-supplied in the short term.
“But we are witnessing an increase in the average size of developments to accommodate occupier requirements as the sector continues to adapt to the increasing popularity of shopping online.”
According to Colliers’ Barometer, national take-up of ‘Big Box’ units of 100,000-plus sq ft slowed to 4.9m sq ft in Q1 2019 – the lowest Q1 reading since 2013, alongside a lack of mega-deals, with only two deals of 500,000-plus sq ft occurring between January and March 2019.
John added: “Industrial and logistics has been the undisputed standout performer over the past 12 to 18 months, successfully managing to navigate the unchartered waters of Brexit following the referendum in 2016.
“Despite this slow start to 2019, we believe that the fundamentals driving the industrial and logistics market remain unchanged. We are confident that by the end of the year, 2019 take-up nationwide will be in-line with the 10-year average of 25 million sq ft.”