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Industrial Market Gathers Momentum

Oct 24, 2013

There is a sense of growing confidence in the industrial property sector. The number of transactions during the first 3 quarters of 2013 are around 30% up on the previous year.

Industrial Market Gathers Momentum

Peterborough has until recently suffered from an over-supply of industrial units but now in certain size ranges shortages are just starting to appear.  What is perhaps particularly encouraging is that there have been more enquires from companies wanting to manufacture which in itself leads to more business for supply companies and this will add to the momentum.

The increase in activity has not yet started to have an impact on rental or capital values but incentives offered to tenants have starting to tighten, with landlords reluctant to offer “freebies” to the extent they were prepared to say 18 months ago.

The increase in activity is also leading to more requirements for Design and Build as the availability of quality stock shrinks to very low levels in certain size ranges.  This has been demonstrated at Eagle Business Park, Yaxley, Peterborough where over 25 new occupiers have moved there over the last 5 years.   All but 3 sites on the 20 acre Park are now occupied. The remaining 3 sites sizes range from 0.3 to 1.28 acres and there are currently three occupiers showing good levels of interest in constructing a 2,000, 6,000 and 10,000 sq ft detached industrial units.

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