Industrial take up in South Yorkshire and North East Derbyshire for 2024 so far has totalled 925,000 sq ft with sub 200,000 sq ft units characterising the demand for occupiers.
The focus on new and modern second hand space, with a further 734,716 sq ft under offer and expected to complete before year end, is highlighted in Knight Frank’s latest LOGIC report for the two regions.
Rebecca Schofield, partner of Yorkshire Industrial and Logistics said: “Take up in South Yorkshire and North East Derbyshire year to date for 2024 totals 925,000 sq ft with demand characterised by take up of units sub 200,000 sq ft and a focus on new and modern second hand space. A further 734,716 sq ft is under offer, expected to complete before year end.
“Demand over the past year has been evenly split between the four major occupier sectors. Distribution and retailers have remained active with non-traditional occupier activity rising, accounting for 32% of take-up. Notably manufacturers have been increasingly active across the region playing a key role in take-up.
“The number of sub 200,000 sq ft transactions has led to a reduction in availability in this size bracket. Subsequently, in prime M1 corridor locations we have seen headline rents reaching £8.75 to £9 per sq ft.
“Occupier activity in the big-box market has been more subdued however over recent months we have seen an uptick in occupier requirements and whilst occupier decision making is slower than we would like we expect this to lead to positive take up in coming months.”
So why is South Yorkshire a good choice for occupiers?
Rebecca added: “The region is well located with 90% of the UK population reachable within a 4.5 hour drive. Labour availability and a skilled, educated workforce is on tap, supplemented by Sheffield’s two universities and the Advanced Manufacturing Corridor plus the region remains cost effective when looking to establish or relocate a business. Its rich manufacturing heritage still continues to lead the way in pioneering technology and processes, attracting the very best to the region.”
Looking ahead, Rebecca added: “In summary the fundamentals of the sector remain strong. We have started to see 3PL and direct occupier demand re-enter the big box market and expect that this will lead to improved take going forward.
