During last year Northamptonshire saw a tentative return to speculative development, albeit confined to the industrial market says commercial property agent, Prop-Search. Since then, construction cranes have been kept busy as the first real wave of speculative development since the credit crunch began got underway.
Grange Park, an established distribution hub adjacent to the M1 at Junction 15, has delivered one of the first ‘big box’ scheme for a number of years. Prologis decided to build speculatively at Grange Park as it believed it offered one of the best opportunities for logistics operators in the East Midlands. Clipper Logistics plc has now taken a new lease on the 342,622 building to operate its contract with Inditex – the parent company of fashion retailer Zara – creating up to 1,000 new jobs.
Goodman is also speculatively delivering two units of 304,000 sq ft and 162,000 sq ft on Grange Park. The scheme, named Northampton Commercial Park, is being developed by the Australian developer having secured detailed planning consent earlier this year and it is anticipated the units will be ready for occupation in spring next year.
Continuing with its return to speculative development – and having successfully delivered six units to the market – Prologis has now committed to speculatively developing 300,000 sq ft in Daventry. Construction is shortly to get underway on two sheds of 85,000 sq ft and 215,000 sq ft at Prologis Apex Park, which forms part of the Drayton Fields Estate; the most modern employment area of the town. The units are anticipated to be ready for occupation in April 2016.
A planning application has also recently been approved for the speculative development of a 103,000 sq ft of distribution warehousing at Thrapston, next to the Paperchase depot on Huntingdon Road. The scheme, by regional developer Hampton Brook, will provide for a single warehouse unit, with multi-storey office accommodation, and both dock and level access loading. Construction is just about to commence on-site and interested parties are being sought for the property on a leasehold basis.
Speculative development of large warehouse facilities is also likely to return to other towns including Kettering and Corby in the not too distant future.
But despite expectations of a continued pick-up in speculative industrial development in 2016, it is expected that the overall level of supply of space will continue to fall. New speculative space is largely being taken as quickly as it is being built thus adding little to existing stock levels of quality industrial/warehouse space which is extremely low in the County. As a result, sustained rental growth has been seen for the first time since the peak of the last property cycle – largely due to the diminishing supply levels of quality space – which is also leading landlords to harden lease terms and incentive packages.
Whilst the majority of this speculative construction has been centred around major distribution hubs, renewed interest in design and build options has also led developers to commit to building out entire schemes.
The largest of these in Northamptonshire is of course the new multi-million pound shopping and leisure development at Rushden. Earlier this year the 350,000 sq ft Rushden Lakes scheme was sold under a forward funding arrangement by LXB to The Crown Estate, with pre-lets reportedly in place with M&S, H&M, House of Fraser, Primark and Costa. Plans for a 12 screen cinema, bowling alley and indoor climbing area are also being considered for the site – to replace the proposed garden centre – in a bid to make the development a truly unique destination and support the local people. The developer hosted a public consultation during October for local residents to view the new plans and voice their opinions. It is anticipated that the first stores should open during the first quarter of 2017.
In Wellingborough, a new 35,000 sq ft retail development by St Modwen on London Road has also seen commitments from major national retailers, ahead of practical completion. Following initial agreements with Lidl for a new 22,500 sq ft food-store and McDonalds for a drive-thru restaurant, pre-lets have also now been agreed with Starbucks, Subway and HSL Chairs.
There are a number of other schemes likely to be developed out during 2016 which boast a good retail offer. A selection include a 13,500 sq ft Aldi food-store is proposed at Nene Park, with a 7,850 sq ft day nursery, and a scheme to support a 10,000 sq ft Co-op on the site of the former Express Works, off of Church Street. Both schemes in Irthlingborough await planning decisions from East Northamptonshire Council.
