Occupiers could be in for a surprise when they get over the border. Liza Helps looks at what’s on offer.
Incredibly, available new floor space in Scotland rose 144 per cent in the past 12 months to 807,000 sq ft and floor space in large buildings increased 8.5 per cent in the year. Between December 2007 and June 2008, available floor space in large buildings over 100,000 sq ft was up by 2.2 per cent. At 6,456,000 sq ft this accounts for 29.8 per cent of the overall total. Iain Davidson of Colliers CRE says: “The availability [of stock] is not too bad but because there is not much development occupiers might see a shortage in the near future.
“At the moment there is a good mix of old and new stock. In west Glasgow, St Modwen has units from 16 – 500,000 sq ft at its Pegasus Business Park development. The largest available unit totals some 132,000 sq ft and is available at £2.75 per sq ft.” He also points out that it’s a great warehouse for a contract-led operator as it has a huge yard.
St Modwen has four new buildings there as well. The largest, at 28,000 sq ft, was pre-sold to Toolbank. The three units left measure 15,000 sq ft, 17,500 sq ft and 22,500 sq ft and have been quoted at £85 per sq ft freehold and £6 per sq ft through joint letting agents Atisreal and Colliers CRE.
Accommodate
Davidson says there are sites at the development, which could accommodate a unit of up to 100,000 sq ft. Other existing new build schemes include Max at Junction 4 of the M8 motorway, which represents the largest completed speculative development to date in the country. It comprises two stand-alone units of 380,000 sq ft and 242,000 sq ft, which can be consolidated to create a single unit of 650,000 sq ft.
The new units have 15m eaves height, 65 dock levellers and level entry doors and bespoke floors constructed to occupiers’ requirements up to 65kN/sq m. Owner Rockpoint and Evander Properties offers the option of connecting them to form one facility through letting agents CB Richard Ellis and James Barr.
At Eurocentral, the Advance Build Programme provides a supply of speculative floor space to complement development of bespoke premises. The latest phase will provide further choice for prospective tenants with individual sizes up to 122,158 sq ft to let. The extensive, established park is alongside the A8/M8 trunk route and is three miles from the Ballieston Interchange between the M8, M73 and M74.
Recently TRAC, a leading supplier of specialist engineering services, took a ten-year lease on the 41,266 sq ft Athena building, at Centralpoint, Eurocentral.
Karen Campbell of TAL CPT Land Development, who is in charge of the Centralpoint development, said: “The Enterprise Zone status at Centralpoint allows us to offer very attractive incentives packages on state of the art, new-build industrial units which range from 53,434 sq ft to 122,483 sq ft.”
The Centralpoint development, which is due for completion shortly, will provide over 423,660 sq ft of industrial space across six buildings.
Earlier in the year timber and panel products distributor, James Latham agreed a deal to take a 40,000 sq ft warehousing and distribution unit at Eurocentral on a 17-year lease.
Lathams leased the Pharos unit at Eurocentral, a highly specified warehousing and production facility. The Eurocentral Partnership was represented by CB Richard Ellis and Ryden, Lathams were advised by Clifford Gee.
There seems to be a good supply of high quality second-hand stock in the market. According to Kirsty Palmer of King Sturge, this could be due to the consolidation of Tesco’s distribution operation for Scotland and Northern Ireland in a new million sq ft purpose-built facility at Livingston, which has released surplus accommodation.
The retailer’s former chilled distribution depot on Deans Industrial Estate, Livingston, offers 195,939.6 sq ft with an 11.9m eaves height, 36 dock levellers and room for expansion.
There are a further two properties available following the collapse of their occupiers. These include the 150,640 sq ft former Ramage distribution facility at Glespin, just off Junction 12 of the M74, which is being marketed by King Sturge and James Barr. It is divided into 154,000 sq ft of warehouse storage and distribution space, along with an additional 9,000 sq ft of office and ancillary welfare facilities.
Cass Hibbert of King Sturge says: “Early indications suggest that there will be good interest in this site. We are offering rental packages starting from £2.50 per sq ft and the landlord may consider disposing of the asset to a suitable purchaser.”
Yan Stewart of James Barr adds: “The site would also be attractive for haulage companies, offering six acres of separate hard standing, along with HGV wash bay, spray booth and repair garage.”
There is also the 157,096 sq ft former Internationale building at Eurocentral. Built in 2007, features include 12m eaves, 14 dock levellers with extensive yard and parking facilities.
The Big Blue Shed at Bellshill Industrial Estate in Lanarkshire is back on the market through King Sturge at a quoting rent of £3.25 per sq ft. The building has become available again due to existing tenant DHL exercising a break option in June. It totals 143,700 sq ft, set on a 6.1-acre site. The building itself offers a clear height of 8.5 to ten metres, 35kN/sq m floor loading, five dock loading bays, four ground level loading doors, as well as craneage and CCTV monitoring. It also has 3,900 sq ft of office space which will be refurbished during the summer.
Expenditure
Looking at future availability Neil Cockburn of Jones Lang LaSalle says: “There is undoubtedly a shortage of suitably serviced sites, which could be developed fairly quickly without the need for further major capital expenditure being incurred in terms of infrastructure.”
Those that are available are in a strong position. These include ProLogis’ ProLogis M8 scheme at Junction 6 of the M8 motorway in North Lanarkshire. It is the only site that could accommodate a single unit of up to one million sq ft.
From an infrastructure point of view, says Cockburn, the M74 southern flank extension is now well underway, with enabling works being clearly visible at the Kingston Bridge end of the link. “This will undoubtedly help the west side of Glasgow significantly, with projects such as Moorfield’s Westway and the Hillington Industrial Estate benefiting.
“Within the last few weeks, at Westway, a number of significant transactions have happened with Star Refrigeration taking 40,000 sq ft and Aggreko Generators acquiring 70,000 sq ft. Both these lettings were at rentals breaking back to an average of £3.00 per sq ft.”
The Enterprise Zone status at Centralpoint allows us to offer very attractive incentives packages on state of the art, new-build industrial units which range from 53,434 sq ft to 122,483 sq ft.
