As the amount of available warehousing starts to diminish even further private investors and property companies are snapping up freehold warehouse opportunities either to re-let or indeed to redevelop.
Recently a private investor represented by Sheffield-based Campbell & Co snapped up an ex-Innovate warehouse totalling 140,000 sq ft on a self contained seven acre site at Manton Wood Business Park in Worksop through Innes England and BNP Paribas Real Estate who acted as joint agents on behalf of the receivers.
With landlords now firmly in the driving seat they are able to dictate terms and lease lengths that are much harder than even 6 months ago. Recently Norbert Dentressangle secured a 330,000 sq ft warehouse known as Storm 18 at Crick from developers Harbut and Canmoor which had previously acquired the building with the idea to redevelop the site.
Negotiations were fierce and the 3PL had to settle for lease and rental terms higher than initially negotiated for a second hand building.
Such is demand from investors that CBRE has noted that capital invested in industrial and logistics property in the first half of 2013 is more than the total volume transacted in 2012.
Richard Moffitt of CBRE said: “We have witnessed a resurgence in buyers eyeing quality UK industrial and logistics property this year, driven by compelling evidence of the sector’s performance relative to other asset classes. Occupier markets continue to thrive, and the resulting lack of prime stock has led to a surge in design and build activity in the best markets.
“The high levels of investment have led to an inward movement in prime yields, now at 5.5 per cent for the best stock, and we expect this trend to continue as competition fro prime assets grow.”
