Demand for sheds doubles in 2016

Business.
Business.

Demand for logistics and industrial properties doubled in the second half of 2016 compared to the first six months, new figures show.

Activity in Doncaster dominated the second half due to lettings to Amazon and Ceva at iPort, the giant logistics hub in Doncaster.

Commercial agents Knight Frank said other major transactions included the purchase of the former Carcraft site in Sheffield by Motorpoint, the Amazon letting at Victory Park in Sheffield and The Bed Shop taking space at Aldwarke Wharf Business Park, in Rotherham.

Rebecca Schofield, partner in the Sheffield office, said: “Demand continues to be driven by a variety of sectors, including warehousing, production and manufacturing.

“Parcel carriers are still active with many still looking to expand. Whilst there is less supply for them to choose they are still cautious about committing to long lease terms and generally look for lease terms which mirror contract lengths, resulting in them often seeking five year breaks in some cases.

“Regionally we are also witnessing good levels of demand from the manufacturing sector.”

Several speculative developments – built before a tenant is signed up – were also under construction including six units at the Advanced Manufacturing Park in Rotherham and a warehouse at iPort. The Helix speculative unit at Junction 36, Barnsley, has just been completed, she added.

Rebecca added: “Small unit development will still be difficult to make viable, although there is demand and rents have improved.”