Research article

The logistics and industrial market in the East of England

Article

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Abstract

It is pleasing to see large scale speculative development return to the region after a prolonged absence which will encourage grade A take-up and further rental growth

Suffolk Park, Bury St Edmunds

Suffolk Park, Bury St Edmunds

Table 7

TABLE 7 | Key stats
Source: Savills Research

Supply

  • Supply in the East of England has risen slightly in 2018 and now stands at 958,084 sq ft across four separate units giving a regional vacancy rate of 4.5%.
  • In the most part this has been driven by a single large unit of 332,600 sq ft at Hardwick Industrial Estate in Kings Lynn, which came to the market at the end of 2017. However, it should be noted that 60% of the supply is currently occupied in the short term by Gardman following the fire at their Midlands facility. Once their relocation back to the Midlands is complete this space will be available for occupation.
  • All units currently on the market are grade B or grade C and the average size is 231,000 sq ft.
Figure 21

FIGURE 21 | Supply by grade
Source: Savills Research

Figure 22

FIGURE 22 | Supply by size
Source: Savills Research

Take-up

  • Following on from four consecutive years of growth and the success of Gateway Peterborough, developed by Roxhill, which is now has just two plots remaining, 2018 has started slowly. There have been just two deals on units over 100,000 sq ft which total 237,470 sq ft.
  • Online retailer Yours Clothing have taken 127,470 sq ft at Newcombe House in Peterborough.
  • Meanwhile at Suffolk Park, Bury St Edmunds, local company Sealey Professional Tools has bought a seven acre site where they intend to construct a 110,000 sq ft unit for future expansion.
Figure 21

FIGURE 23 | Take-up
Source: Savills Research

Development pipeline

  • Much needed grade A supply will be delivered to the market in Q4 2018 after Jaynic announced the development of two units at Suffolk Park Bury St Edmunds.
  • The first speculative units to be delivered in the region for over a decade will see two units constructed, one of 206,491 sq ft and another of 147,241 sq ft.