2012 uk industrial and distribution market overview

2 0 1 2 m a r k e t o v e r v i e w

Industrial &Distribution

introduction 1

south east england 2

south west england 3

greater london 4

east england 5

prime gets primer and developers build speculatively 6

wales 7

east midlands 8

land banks and mixed use development 9

west midlands 10

north west england 11

east london – one to watch 12

yorkshire/humberside 13

north east england 14

poor grade will struggle 15

hotspot’s north 15

scotland 16

appendix 17

uk distribution motorway map 18

market structure 19

big box dilemma & the 3pl challenge 20

continuing to green 21

© Capita Symonds 2012. All rights reserved. The information is for guidance purposes only and represents Capita Symonds’ general views. No liability will be accepted for loss or damage arising from its use. Formal agency advice can be provided upon request.

12 0 1 2 m a r k e t o v e r v i e wIndustrial & Distribution

This is the 5th edition of the Industrial and Distribution Market Overview for the UK and coincides with the 5th anniversary of the onset of the financial crisis in the UK. After five years of uncertainty we’re surely not the only ones hoping that 2012 will be the turning point for the macro economic situation in the UK. There have been hotspots and winners despite the testing business climate but the healthy evolution of the UK industrial property market in the UK needs confidence and stability to return.

Some take the view that we are over the worst of the Eurozone crisis. Whether that is the case remains to be seen but certainly as we write the fear of a complete meltdown has abated and there is more confident talk in political and commercial quarters.

As it is, 2011 will go down as a mixed year where, in many cases it was a bit of a plod from the previous. There is plenty of contrasting data around take up and supply across the UK.

On the positive side, there was a good level of activity from retailers. While trading is challenging on the high street there are certain new and established brands which have prospered. At the same time whether trading is good or not, many of the rest are looking at the components of the supply chain. All this change feeds into industrial market activity.

Manufacturing is also making a resurgence. The big brand names in the East Midlands and other regions tend to grab the headlines but behind them are many SME’s either prospering independently or benefiting in the slipstream.

Let’s not get ahead of ourselves but there are certainly some green shoots emerging from an industrial market perspective.

Overleaf is an updated, region by region indication of property values, land and capital land rentals as well as an overview of the economic variations, GVA per head, labour rates and summary of recent news items. There is also an added feature of commentary on the outlook of each market.

Included are land capital rental values by town for each of the areas as well as an outlook for each market.

In the last section we have included a map of the UK distribution motorway network as well as an overview of the latest market structure and breakdown.

Andrew Smith Director, Industrial Agency

May 2012

introduction

2


EmploymentUnemployment in the South‑East is 6.3%, an increase of 3.2% since 2011, however it is still one of the lowest in the country. GVA per head is £21,924. The region contributes 14.7% of the total UK GVA (£1.301bn), the second largest contribution after the Greater London area.

Property values

Town ERV CV LV

Bedford £6.00 £65.00 £400,000

Brighton £7.50 £100.00 £550,000

Didcot £6.75 £105.00 £500,000

Oxford £8.00 £110.00 £550,000

Portsmouth £7.50 £85.00 £375,000

Reading £8.50 £110.00 £550,000

Southampton £7.50 £90.00 £500,000

ERV Estimated Rent Value per sq ft CV Capital Value per sq ft LV Land Value per acre

south east england

Recent real estate news — A Capita Symonds client acquired the 300,000 sq ft (10 acre) former Arjo Wiggins site in Dartford for mixed use redevelopment for an undisclosed sum.

— Furniture Village Plc has taken 104,500 sq ft (9,708 sq m) of industrial space within Unit DC3 in Milton Keynes from Prologis Group Holdings Ltd on a new lease at £600,875 pa, equating to £5.75 psf (£61.89 psm).

— Palmer & Harvey Ltd has taken 167,730 sq ft (15,583 sq m) of warehouse space in 1 G Park, Hemel Hempstead on a 25‑year lease at £997,994 pa, equating to £5.95 psf (£64.04 psm).

— Motorline bought a 10,000 sq ft industrial unit in Tunbridge Wells. Capita Symonds acted for Royal Mail in the surrender of the lease.

— Nampak Cartons and Healthcare Limited have acquired 50,127 sq ft industrial facility in Fareham. The lease is for 15 years long with an option to break in the 7th year (2018). The rent is 298,255 pa, equating to £5.95psf.

— Capita Symonds acted on behalf of AXA in the letting of a 1 acre site at Chequers Lane, Dagenham to Morgan Sindall on flexible lease at £50,000 per annum.

Largest employee sectors Examples

Managers/Senior Officials HGV DriversRate p/hr £19.27 £10.25Rate p/a £38,002 £25,012

IT/Financial/Professional Services VodafoneWholesale and Retail Sainsbury’sManufacturing Vauxhall

— Heathrow — Stansted — Gatwick — Dover

— Folkestone — Felixstowe — Southampton

— M25, M4, M40, M20, M1, A1(M), M3

— Heathrow — Park Royal — Dartford

Overview

Labour rates

Main industrial locations

Major motorways

Nearest freight terminal

2 0 1 2 m a r k e t o v e r v i e wIndustrial & Distribution 3


EmploymentUnemployment is 6.1%, this is the lowest rate in the country. GVA per head is £18,669, an increase of 2.6% since 2009. It contributes 7.7% of the total UK’s GVA.

Property values

Town ERV CV LV

Bristol £7.50 £90.00 £275,000

Cheltenham £6.50 £75.00 £300,000

Gloucester £6.50 £80.00 £350,000

Swindon £5.75 £85.00 £300,000


Recent real estate news — Capita Symonds, on behalf of Trelleborg, disposed of the 12 acre (100,000 sq ft) former Trelleborg site in Trowbridge for £2.1 million to DTR VMS with completion due in May 2012.

— City Link has taken 66,753 sq ft (6,202 sq m) of industrial space at Jupiter Road Distribution Centre, Bristol, from Prudential Plc. on a 10‑year lease at £300,000 pa, equating to £4.49 psf (£48.37 psm)

— WH Malcolm Ltd has taken 250,000 sq ft (23,226 sq m) of warehouse space at Western Approach Distribution Park, Bristol, from London & Stamford Property Plc on a seven year lease at £1,000,000 pa, equating to £4.00 psf (£43.05 psm), subject to an option to break in year three.

— St Austell Brewery Co Ltd has purchased the freehold interest in its own 50,000 sq ft (4,645.15 sq m) distribution warehouse in St.Columb from former landlord Klina Ltd (in receivership) for £2,000,000.

— Boomeco Ltd have taken 77,982 sq ft (7,244.76 sq m) of industrial space in Estuary Park, Avonmouth, from Lasalle Investment Management on a five year lease at £233,946 pa, equating to £3.00 psf (£32.29 psm), subject to an option to break in year three.

— DMG Ltd. have taken 107,000 sq ft (9,941 sq m) of industrial space within Building 2, Westland Distribution Park, Weston Super Mare. from St Modwen on a five‑year lease at £107,000 pa, equating to £1.00 psf (£10.76 psm).

— West Design Products Ltd has bought a freehold interest in Plymouth. It consists of 78,806 sq ft (7,321 sq m) of industrial space for £1,300,000.

south west england



Health and Education NHSBusiness and Financial Services NationwideRetail Co‑op

— Bristol — Plymouth

— M4, M5

— Swindon — Bristol — Plymouth

Overview

Labour rates


Major motorways


4


EmploymentUnemployment in Greater London stands at 10%, one of the highest in the country. It has increased from last years figure of 9%. GVA, however, is £35,026, which is an increase of 0.71% on the previous year of £34,779. This accounts for 21.5% of the UK’s GVA, the biggest single contribution of the UK regions.

Property values

Town ERV CV LV

Basildon £6.50 £75.00 £325,000

Bracknell £8.00 £105.00 £550,000

Chelmsford £7.25 £95.00 £500,000

Croydon £8.50 £110.00 £750,000

Dagenham & Barking £8.00 £110.00 £750,000

Dartford £8.25 £100.00 £550,000

Enfield £9.00 £115.00 £850,000

Guildford £9.25 £110.00 £750,000

Harlow £7.00 £75.00 £350,000

Heathrow 12.50 £150.00 £1,700,000

Hemel Hempstead £8.00 £110.00 £650,000

Luton £7.00 £100.00 £500,000

Park Royal £13.25 £150.00 £1,800,000

Slough £11.75 £115.00 £1,100,000


Recent real estate news — Capita Symonds acted on behalf of the LDA in letting Sugarhouse, a warehouse in Stratford consisting of 21,483 sq ft to Serco at £6.25 psf.

— Fedex UK has taken 41,110 sq ft (3,819 sq m) of industrial space at 1‑11 Galloway Road, London, from OCS Ltd on a fifteen‑year lease at £369,990 pa, equating to £9.00 psf (£96.76 psm).

— Capita Symonds have let 3 of 4 vacant units on Trident Industrial Estate, Poyle at a headline rents of £10.50 psf.

— Waitrose Ltd has taken 198,221 sq ft (18,415 sq m)of industrial space in Ealing on a five‑year lease at £850,000 pa, equating to £7.75 psf (£83.41 psm).

— Speedy Hire Asset Services Ltd has taken 20,430 sq ft (1,898 sq m) of ground‑floor industrial space in 43‑49 Minerva Road, Ealing, from Eskmuir Properties Ltd on a 10‑year lease at £199,193 pa, equating to £9.75 psf (£104.95 psm), subject to a rent review and an option to break in year five.

— Capita Symonds acquired 18,315 sq ft on the North Feltham Trading Estate, Heathrow on behalf of Marken Ltd at a rental of £10.00 psf with 20 months rent free on a 10 year lease (break at the 7th).

— Capita Symonds has recently won an instruction from Royal Mail to dispose of their 183,000 sq ft warehouse in Bromley by Bow.

greater london


Business and Financal Services HSBC Group, BarclaysGovernment Central Government Health and Education GSK


— Luton — Harlow — Chelmsford

A1(M)M11

M1

M25 M25

M25

M26

M20

M40

M4

M3 M25

M23

Heathrow

Slough

Enfield

Park Royal

Croydon

Dartford

Guildford

Bracknell

Hemel Hempstead

Harlow

Chelmsford

Basildon

Dagenham & Barking

Luton

Labour ratesLargest employee sectors Examples

Overview

M25



EmploymentThe East of England’s unemployment rate is currently 7%, the third lowest in the UK. GVA has increased by 2.42% to £18,996 per head since the previous year. The East contributes 8.7% of the UK’s GVA.

Property values

Town ERV CV LV

Colchester £6.50 £90.00 £325,000

Felixstowe £5.00 £60.00 £150,000

Ipswich £5.00 £65.00 £160,000

Norwich £5.00 £70.00 £175,000

Peterborough £5.25 £55.00 £200,000


Recent real estate news — Ups Ltd has taken 25,275 sq ft (2,348.12 sq m) of industrial/warehouse space at 48 Hurricane Way, Norwich, on a five year lease at £83,500 pa, equating to £3.30 psf (£35.36 psm).

— Marexport Ltd has taken 24,497 sq ft (2,276 sq m) of industrial space in unit 2 cliff Road, Ipswich at £96,763 pa, equating to £3.95 psf (£42.52 psm).

— Airvert Ltd has purchased the freehold interest in 46,864 sq ft 4,354sq m) of warehouse space at Chiswick Avenue, Mildenhall for £1,200,000.

— Hotel Chocolat Ltd has taken 110,000 sq ft (10,219 sq m) of ground‑floor industrial space at Alpha Park, near Bedford on confidential terms. King Sturge acted on behalf of the landlord.

— The Denholm Group has taken 160,000 sq ft (14,864.49 sq m) of industrial space in Unit E from Verbrugge International BV on a sublease expiring in September 2013 on confidential terms.

— Freshpeel Produce Limited has purchased the freehold interest in 30,775 sq ft (2,857 sq m) of Factory space in Wisbech from Greenvale Foods Limited for £875,000.

east england



Managers/Senior Officials HGV DriversRate p/hr £17.91 £10.28 Rate p/a £35,682 £25,881

Manufacturing Procter & GambleWholesale and Retail Premier FoodsManufacturing/Engineering Senior PLC

— Felixstowe — Harwich Port

— M11

— Norwich — Ipswich — Cambridge

Overview

Major motorways


6


2 0 1 2 m a r k e t o v e r v i e w2 0 1 2 m a r k e t o v e r v i e wIndustrial & Distribution

South Dagenham DocksC H E Q U E R S L A N E • D A G E N H A M • R M 9 6 S A

S E C U R E H A R D S TA N D I N G T O L E T

A1306

A13

M25

Ford Motor Company Dagenham Dock

Goresbrook Interchange

ASDA

Merrielands Retail Park

Chequers Lane

White Outline

Kuehne + Nagel

axa – dagenham

Capita Symonds are joint agents acting on behalf of AXA on their 21 acre warehouse development site (400,000 sq ft) in Dagenham.

central park – park royal, london

Capita Symonds are joint agents acting on behalf of SWIP/Goya on a new multi‑unit industrial development (161,372 sq ft) next to Middlesex Hospital Capita Symonds advised on this acquisition in 2011.

There is estimated to be over about 1 million sq ft of spec development under construction in over 20 schemes around the country. About half of that is within the Greater London and South East area.

Historically we would have expected the Heathrow sub‑market to be headlining the speculative development story. This time round though its more about Park Royal which on current evidence looks likely to surpass Heathrow (excluding airside) as the most expensive industrial location in the UK. Park Royal is a diverse industrial location with a broad tenant base covering manufacturers, warehousing and specialist logistics. Where Heathrow has a supply overhang however, Park Royal is short on quality stock. Capita Symonds is advising SWIP/Goya’s on its speculative development at Central Park in Park Royal (www.london‑centralpark.com) and early occupier interest in the scheme demonstrates that their confidence is well founded.

Speculative development is less prevalent in East London although interest is gathering and a c 100,000 sq ft scheme start is predicted over the next 12/18 months by Goya Developments in Canning Town.

In terms of development land, we saw more unconditional purchases last year, SWIP (Taplow and Park Royal), La Salle/ Exton Estates at Crawley. Big Box warehouse developers like Roxhill who are well funded could make quite a mark this year with acquisitions. Developers who were active pre recession like Chancerygate are also back busy again with pre‑commitments and speculative development.

We’re confident rents in Park Royal will tip over £13 per sq ft in 2012 with land and capital values increasing further as well. We are only 10/15% off 2006/07 peaks in this location on land values – that gap is already closing.

prime gets primer and developers build speculatively Andrew Smith – Director, Industrial Agency

http://www.london-centralpark.com




EmploymentThe unemployment rate in Wales stands at 9% and the GVA is £15,145, an increase of 3.18% from the previous year’s £14,664, but still the lowest in the UK. This is 3.6% of the UK’s total GVA.

Property values

Town ERV CV LV

Cardiff £5.50 £55.00 £125,000

Swansea £4.50 £50.00 £100,000


Recent real estate news — Speedy Asset Services Ltd has taken 26,083 sq ft (2,423.19 sq m) of industrial space at Unit 47 Portmanmoor Road Industrial Estate, Cardiff, on a ten year lease at £91,291 pa, equating to £3.50 psf (£37.67 psm).

— DHL has taken 42,961 sq ft (3,991.21 sq m) of industrial space at unit 3 Tregwilym Industrial Estate, Rogerstone, on a five year lease at £150,000 pa, equating to £3.49 psf (£37.58 psm).

— Protomould Limited has taken unit A1, comprising 25,124 sq ft (2334 sq m) of industrial space at Llantrisant Business Park from Barrington Investments Limited on a 6‑year lease at £88,000 pa, equating to £3.50 psf (£38 psm), subject to a review and an option to break in year three.

— Davenport Leasing has purchased the freehold interest in 54,600 sq ft (5,073 sq m) of industrial space for £875,000 in Ebbw Vale.

— Blywert Beaufort has taken 132,750 sq ft (12,332 sq m) of Unit IP1 and IP 2 industrial space in Imperial Park, Newport on a five year lease at £531,000 pa, equating to £4.00 psf (£43.06 psm).

wales




Manufacturing British AerospaceHeavy Industry Metal RefiningElectronics Sony

— M4

— Cardiff — Swansea — Newport

Overview


Major motorways

— Newport — Cardiff — Barry

— Swansea — Port Talbot

8


EmploymentThe East Midlands has one of the lowest unemployment rates in the UK at 8.2% and a GVA of £18,090 per head. This has increased by 3.16% (£17,519) since the previous year, and makes up 6.4% of the total UK GVA.

Property values

Town ERV CV LV

Derby £5.00 £50.00 £140,000

Leicester £5.50 £60.00 £200,000

Nottingham £5.50 £55.00 £150,000


Recent real estate news — Capita Symonds acted on behalf of Structadene in the sale of 125,000 sq ft (5 acres) of industrial land on Fosse Way for £2,475,000.

— POS Direct Ltd has taken 70,110 sq ft (6,513.43 sq m) of industrial space at Unit 3 Radar Road, Leicester on a new lease at £333,023 pa, equating to £4.75 psf (£51.13 psm).

— Carlsberg UK Ltd has taken 132,622 sq ft (12,320.99 sq m) of industrial space at the former Accuride International site in Northampton on a six month lease at £596,799 pa, equating to £4.50 psf (£48.44 psm).

— Meomi Ltd has taken 46,150 sq ft (4,287 sq m) of ground‑floor industrial space in Dabell Avenue, Nottingham, from Property Alliance Group Ltd on a ten‑year lease at £180,000 pa, equating to £3.90 psf (£41.98 psm), subject to a rent review and a tenants option to break in year five.

— Assured Logistics has taken 212,500 sq ft (19,742 sq m) of industrial space within unit 2, phase 3 Max Park, Corby, on a five‑year lease at £956,250 pa, equating to £4.50 psf (£48.44 psm).

east midlands




Finance Services SantanderManufacturing ToyotaRetail ASDA

— Nottingham — Daventry

— M1, A1(M), M11, M6

— Nottingham — Daventry — Castle Donnington — Leicester — Northampton

Overview

Major motorways



9


standard life – erith

Capita Symonds has been instructed on a 97,000 sq ft warehouse facility in Erith on a 6.25 acre site to let or sell.

sappi – blackburn

Capita Symonds acted on behalf of Sappi in the disposal of their 118 acres of land, including 500,000 sq ft of buildings in Blackburn for c. £5,000,000 (net).

We saw some activity last year with more land banking and speculative purchasing of large former industrial sites. This was mainly by developers and venture capitalists. A representative deal would be Capita Symonds sale of the former Sappi Mill in Blackburn to Aeternum Capital. There are a number of other buyers who are looking for these types of sites across the country now who are prepared to pay better than ‘distress’pricing where there is genuine hope value for alternative uses. Underpinning this interest are the fundamentals of population increase and a shortage of housing. A ‘beyond London’ housing recovery will come through at some point and sentiment is definitely shifting towards the value opportunity in sites which have the ability to play a part.

land banks and mixed use developmentAndrew Smith – Director, Industrial Agency


10


EmploymentUnemployment in the West Midlands currently stands at 9.3% as of 2011. This is third highest and is way above the UK average of 8.4%. It is, however, the only region to improve its unemployment rate since last year (9.8%). GVA per head, as of 2010, stood at £17,060. This is a 2.68% increase since 2009, when it was 16,602. This amounts to 7.3% of the UK total.

Property values

Town ERV CV LV

Birmingham £5.75 £75.00 £250,000

Coventry £5.50 £80.00 £275,000

Daventry £5.25 £65.00 £260,000

Northampton £5.75 £75.00 £300,000

Rugby £5.50 £65.00 £225,000

Stafford £5.25 £60.00 £150,000


Recent real estate news — Inkfish Services Ltd. has taken 56,459 sq ft (5,245.21 sq m) of industrial space at Unit 25 Prologis Park, Coventry on a seven year lease at £296,410 pa, equating to £5.25 psf (£56.51 psm).

— Pointbid UK Ltd has taken 58,609 sq ft (5,444.95 sq m) of industrial space within Unit 3 Meteor Park, Birmingham, from SEGRO Plc on a five‑year lease at £281,323 pa, equating to £4.80 psf (£51.67 psm).

— HSD Ltd has taken 41,750 sq ft (3878.70 sq m) of industrial space within unit 6 Kingsbury Business Park, Sutton Coldfield from Scottish Widows Investment Property Trust on a five‑year lease at £187,875 pa, equating to £4.50 psf (£48.44 psm), subject to a tenant only option to break in year two.

— An undisclosed tenant has taken 120,735 sq ft (11,217 sq m) of industrial space at Hams Hall Distribution Park, Coleshill, on a new lease at £573,491 pa, equating to £4.75 psf (£51.31 psm).

— BES Ltd has taken 77,317 sq ft (7,182.98 sq m) of industrial space at Unit 12 Junction 6 Industrial Park, Birmingham, from Prupim on a 10‑year lease at £394,317 pa, equating to £5.10 psf (£54.90 psm), subject to a rent review in year five.

west midlands


Major motorways




Manufacturing TATAFinancial, Business & Prof Services HSBCRetail Tesco

— Birmingham

— M1, M5, M40, M6, M42

— Birmingham — Coventry — Stoke‑on‑Trent

Overview

Labour rates



EmploymentUnemployment in the North West has seen a relatively sharp rise of from last years figure of 7.7% to 9.3%. GVA is £17,381 per head, an increase of 2.86% since the previous year. The region contributes 9.5% towards the UK’s total of £1.301bn.

Property values

Town ERV CV LV

Liverpool £5.00 £65.00 £120,000

Manchester £6.00 £75.00 £225,000

Skelmersdale £5.25 £65.00 £140,000

Stoke‑on‑Trent £5.00 £55.00 £100,000


Recent real estate news — Capita Symonds acted on behalf of Sappi in the disposal of their 118 acres of land, including 500,000 sq ft of buildings in Blackburn for c. £5,000,000 (net).

— Idem Safety Switches Ltd has purchased the freehold interest in 42,159 sq ft (3916.70 sq m) of industrial/warehouse space on Ormside Close, Wigan, for £620,000 from Rockwell Automation Ltd.

— Bibby Logistics Ltd has taken 53,174 sq ft (4,940 sq m) of ground‑floor industrial/warehouse space, within the Distribution Premises on Wynne Avenue, Swinton on a five‑year lease at £110,000 pa, equating to £2.07 psf (£22.27 psm), subject to an option to break at the end of year three.

— Cellular Systems Ltd has taken 41,100 sq ft (3,818.31 sq m) of industrial space within Unit 2 Easter Park, Widnes, from Easter Group Ltd on a new lease at £165,000 pa, equating to £4.01 psf (£43.21 psm).

— Vitesse Mailing Ltd has taken 43,559 sq ft (4,047 sq m) of industrial/warehouse space within Units 1, 2 and 3 Parker Street Industrial Estate, Preston, on a 4‑year lease at £65,000 pa, equating to £1.49 psf (£16.06 psm).

— Holchem Laboratories Ltd has purchased the freehold interest in 92,826 sq ft (8,624 sq m) of industrial space in Gateway House, Bury, from Imperial Tobacco Pension Trustees Ltd for £2,500,000.

north west england



IT Services IBMRetail ASDAChemicals/Pharmaceuticals British Nuclear Fuels PLC

— Liverpool — Crewe (Basford Hall)

— M6, M60, M56

— Liverpool — Manchester — Preston

Overview Main industrial locations

Major motorways


Labour rates


12

Those for and against the Olympics are likely to continue trading blows for sometime yet. What’s not really up for debate though is the extent to which the fundamentals of the industrial market have changed. It’s a massive shift.

To begin with, over 250 acres of industrial land were lost to the Olympic development. Then there’s the infrastructure improvements and broader inward investment to the area. Westfield, Stratford may take the headlines for now but behind it there is a much broader re‑structure underway across the East London economy. Residents and businesses are moving in who wouldn’t have stopped to take a look at the area a decade ago.

All this change is good for the industrial market.

As far as existing stock goes there is a broader demand pool to tap into. Capita Symonds has just been instructed to market the former Royal Mail Group facility at Bromley by Bow and we’re confident of high demand from the combination of new entrants to the market post Olympics and the solid base of logistics businesses attracted by the fundamentals.

It is these characteristics which are behind the emergence of a number sites now primed for industrial and warehousing development across the size spectrum. Not a great deal of commitment to develop speculatively yet but sentiment is definitely shifting.

For the record, we’re big fans of the Olympics and have been working on behalf of one of the host councils, The London Borough of Newham to lease out some of their assets for the duration of the Games. Huge demand and an interesting insight into the requirements of the Olympic Committees (NOC’s), contractors and corporates.

east london – one to watchJames Shillabeer – Associate Director, Industrial Agency

ELMS ELIZABETH WAY • HARLOW • ESSEX CM19 5BD

Owner Occupier/Redevelopment Opportunity 13.93 acres (5.64 hectares)with 246,974 sq ft (22,943 sq m) of office /industrial buildings

www.elms-park.co.uk FOR

pitney bowes – harlow

Capita Symonds have been instructed on the disposal of Pitney Bowes 13.94 acre site in Harlow, comprising of 106,000 sq ft of office space and an additional 146,000 sq ft warehouse/factory facility. The site is currently under offer.

royal mail – bromley by bow

Capita Symonds have been instructed to dispose of Royal Mail’s Distribution Warehouse in Bromley By Bow. The warehouse is 183,740 sq ft situated on an 11 acre site.




EmploymentUnemployment in Yorkshire & Humberside is one of the highest in the UK at 10.1%. The GVA per per head is £16,917, which is an increase of 2.39% since the previous figure of £16,512, contributing 7.0% of the UK’s total.

Property values

Town ERV CV LV

Bradford £5.50 £55.00 £175,000

Doncaster £4.75 £45.00 £100,000

Leeds £6.00 £65.00 £200,000

Sheffield £5.00 £55.00 £130,000


Recent real estate news — Capita Symonds acted on behalf of Capita Group in the letting of 160,000 sq ft in Wetherby to Lindam in 2011 at a passing rent of £4.50 per sq ft on a 7 year lease (no breaks).

— Esterform Packaging Ltd has taken 99,652 sq ft (9,257 sq m) of industrial space on Royds Farm Road, Leeds in a sale and leaseback transaction on a 20 year lease at £431,820 pa, equating to £4.33 psf (£46.65 psm), subject to a rent review every five years.

— Kingspan Renewables has taken 65,036 sq ft (6,041.84 sq m) industrial/warehouse space within Unit 5 Dearne Mills from F&C REIT Asset Management Ltd on a rolling one year lease at £160,000 per annum, equating to £2.46 psf (£26.48 psm).

— TNT has taken 61,768 sq ft (5,738 sq m) of industrial floor space at Stadium Gate in Leeds from Endless Llp on a five year lease at £308,840 pa, equating to £5 psf (£54 psm).

— Morgan Sindall PLC has taken 70,200 sq ft (6,521 sq m) of industrial space on Old Run Road in Leeds from F&C REIT on a three year lease at £298,350 pa, equating to £4.25 psf (£45.75 psm), they have an option to break after 18 months.

— Alumasc has taken 48,368 sq ft (4,494 sq m) of industrial space within unit 1 Potter Grange Industrial Estate, Goole, from Ashtenne Industrial Fund Ltd Partnership on a three‑year lease at £160,000 pa, equating to £3.31 psf (£35.61 psm).

yorkshire/humberside




Financial Services First DirectTelecommunication British TelecomManufacturing Carlton Brick

— Kingston upon Hull — Grimsby

— M6, A1 (M)

— Doncaster — Leeds — Hull

Overview

Major motorways


Labour rates

14


EmploymentThe North East has the highest unemployment rate in the UK, at 11.2%, significantly greater than the UK average of 8.4%, this has increased from 10.2% in 2010. Aside from Wales, it also has the lowest GVA per head, currently at £15,744. This is an increase of 2.79% since 2009 (£15,304). This area of the UK has been significantly hit by the recession, with many large‑industries choosing to relocate or downsize.

Property values

Town ERV CV LV

Newcastle‑upon‑Tyne £5.25 £50.00 £110,000


Recent real estate news — Doncaster Paralloy Ltd has taken 44,540 sq ft (4,138 sq m) of ground floor industrial space within Unit 1 Cassel Court, Stockton on Tee, from PBJ Property Services on a one year lease at £120,000 pa all inclusive, equating to £5.39 psf (£58.00 psm).

— Metnor Construction has taken 53,305 sq ft (4,952 sq m) of industrial space at Unit 8 Team Valley Trading Estate, Gateshead, from Olnato Ltd for a six month term on at £75,000 pa, equating to £1.40 psf (£15 psm).

— Vantec Limited has taken 70,000 sq ft (6,503 sq m) of industrial space at Davy Drive, Peterlee, from BHK (UK) Ltd on a three year, all inclusive lease at £250,000 pa, equating to £3.57 psf (£38.44 psm), subject to an annual break clause.

— Caterpillar (UK) Ltd has taken 68,521 (6,366 sq m) of industrial space from Grouphomesafe at Unit A Peterlee North West Industrial Estate, on assignment of an existing lease expiring in April 2018 at a passing rent of £236,000 pa, equating to £3.44 psf (£37.07 psm).

— Tinsley Special Products has taken 58,629 sq ft (5,446.81 sq m) of ground‑floor industrial space from Better Properties Ltd on an eighteen month lease at £60,000 pa, equating to £1.02 psf (£11.02 psm).

north east england



Retail TescoFinance Services VirginManufacturing Scottish & Newcastle Breweries

— Newcastle‑upon‑Tyne — Carlisle (Ringmoor) — Kingston upon Hull

— M6, M1

— Newcastle‑upon‑Tyne — Middlesbrough — Sunderland

Overview

Major motorways




15


Secondary property of sub‑standard specification is continuing to struggle. Receivership properties in particular are at risk of sliding into complete obsolecence unless someone takes control. It is a double edged sword, the receivers and administrators are constrained in what they can invest to improve the lettability or marketability of the property on a short term basis let alone develop a longer term asset plan .

Manufacturing is continuing to surge, SME’s have been one of the strongest emerging sectors from the recession and have gone about reinventing themselves and adding value to the supply chain in manufacturing. 5 years ago the manufacturing cost differential between the UK and China was 50%. Recent reports suggest the gap has closed to 15%. Put time and risk into the equation and its clear why competitive advantage is swinging back for UK manufacturers. Whilst warehousing still dominates this is an area which is seeing much more activity with demand. Landlords just need to have faith in these organisations and their covenants.

poor grade will struggleAndrew Smith – Director, Industrial Agency

Aberdeen remains a hot spot with rents pushing up to £10 per sq ft on small industrial stock. The growth of the oil industry and the resurgence of new companies into Aberdeen make this one of the biggest growth markets in the country and we cannot see it slowing up for some time unless oil prices fall back.

There also seem to be other spots across the North West which we are seeing on certain requirements we have for clients. There is a real struggle for good modern stock. Therefore good refurbished ‘ready to go’ modern stock will see good appetite from occupiers with potentially reduced incentives and the possibility of growing rents.

hotspot’s northAndrew Smith – Director, Industrial Agency



16


EmploymentThe Scottish unemployment rate is 8.6%, which is marginally more than the UK average. The GVA per head is the third highest in the country, at £20,220, and has increased by 2.3% (previous figure £19,775). Scotland contributes an 8.3% share of the total UK GVA.

Property values

Town ERV CV LV

Aberdeen £9.00 £110.00 £500,000

Edinburgh £6.50 £80.00 £210,000

Glasgow £6.25 £75.00 £170,000


Recent real estate news — Capita Symonds acted on behalf of Emerson Electric in acquiring three sites in Aberdeen with rents ranging from £8.00‑£9.00 psf.

— Eddie Stobart Group Ltd has taken 67,689 sq ft (6,289 sq m) of industrial space at 6 Brittain Way, Bellshill on a 15 year lease at £389,212 pa, equating to 5.75 psf (£61.89 psm).

— Group Ltd has taken 25,833 sq ft (2,399.96 sq m) of industrial space at Unit 5 Kingsthorne Park, Livingston, on a new five‑year lease at £115,000 pa, equating to £4.45 psf (£47.92 psm) from Ashtenne Industrial Fund Ltd Partnership.

— Thornbidge Sawmills Ltd has taken 20,125 sq ft (1,878 sq m) of industrial space at 58 Seafield Road, Inverness, from Tenon Group SIPP on a new 10‑year lease at £90,000 pa, equating to £4.47 psf (£48.14 psm).

— SPD Print Solutions has taken 21,790 sq ft (2,024 sq m) of industrial space at Block 20 Units 3 & 4 Cambuslang Investment Park, Glasgow, from Buccleuch Property on a 10 year lease at £87,160 pa, equating to £4.00 psf (£43.06 psm).

— Vion Food Group Limited has taken 123,996 sq ft (11,519 sq m) of industrial space at 5 Royston Road, Livingston, on a new lease at £200,000 pa, equating to £1.61 psf (£17.36 psm).

— Trespass has taken 45,000 sq ft (4,180.64 sq m) of industrial space within Unit 1Bucanan Park, Stepps, from Catalyst Capital on a one year lease at £63,000 pa, equating to £1.40 psf (£15.07 psm).

scotland




Financial Services RBSHealth Education NHSEnergy Scottish Power

— Grangemouth — Leith

— Aberdeen — Greenock

— M8, M9, M80, M90, M74

— West Edinburgh — Newbridge — Livingston — Glenrothes — Grangemouth

— Aberdeen — Eurocentral — East Kilbride — Hillingdon — Cambuslang

Overview

Major motorways


Labour rates



ERV Based on 10,000 sq ft brand new unit in a prime location, with 45‑50% site cover and 10% office content, and a lease term of 5‑10 years.

CV Based on 10,000 sq ft brand new unit in a prime location with 45‑50% site cover and 10% office content.

Land Value Based on land with an unrestricted B1(c), B2, & B8 planning consent with a 45‑50% site cover and in a prime location. Also based on no abnormal cost for any environmental issues, s.106 committments or site levelling.

GVA Gross Value Added.

A map providing an overview of the GVA per head for the UK industrial regions is below. These figures have been explained in more depth throughout the document.

appendix

17.40.21

north west

15.10.15

wales

17.1-0.49

west midlands

19.0-1.57

east

18.10.76

east midlands

16.9-0.56

yorshire/humberside

15.70.45

north east

20.21.13

scotland

18.70.34

south westsouth east 21.9

0.3

< 16

16 ‑ 18

> 18

GVA per head £’000, 2010

% Change in GVA 2008‑2010

london 35.00.18

18


uk distribution motorway map

M27

M275

M3

M49

A404(M) M1

M40

M1

M6M69

M6

M56

M53M6

M56

M60

M18

M621

M1

M18

M60

A57(M)

A6144(M)

M62

M9

M57

M6

M65

M61

M9M80

M876

M9

Cannock East

Riddrie

Cambridge North West

Cambridge West

Cambridge South West

Cambridge South

Duxford

Great Chesterford

Stansted AirportHarlow

Brentwood

Upminster

South Ockenden

Dartford Crossing

Dartford

Darenth

Swanley

Woodford

Loughton

Cheshunt

Waltham Abbey

Potter’s Bar

South Mimms

Hatfield South

Hatfield

Stanborough

Welwyn G. City

Welwyn

Stevenage South

Stevenage North

Letchworth

Stotfold

M11

A1(M)

Huntingdon

Alconbury

Peterborough

Yaxley

SawtryA1(M)

Chiswell Green

Bricket Wood

M25

Watford East

Elstree

Mill Hill

Brent Cross

St AlbansM10

M11

King’s Langley

Watford North

Maple Cross

Uxbridge

West Drayton

Heathrow Airport

Hayes

Brentford

Chiswick

M4

Stanwell

StainesSunbury

Leatherhead

Coulsden

Gatwick Airport Three Bridges

Crawley

Crawley SouthM23

Godstone

Sevenoaks

Chelsfield

Wrotham

Borough Green

West Malling

Aylesford

Maidstone North

Maidstone

Maidstone East

Ashford North

Ashford East

Hythe

Channel Tunnel

Folkestone

Folkestone West

LONDON

Strood

Rochester

Blue Bell Hill

Rainham

Sitting-bourne

Faversham

Faversham East

Langley

Slough

Slough West

Maidenhead South

A308(M)

Maidenhead West

Maidenhead South West

Bracknell

A329(M)

Reading East

Reading South

Reading West

Newbury

Hungerford

Swindon East

Swindon West

Chippenham

Chipping Sodbury

Frenchay

Stapleton

BRISTOL

Patchway

Over

Bagshot

Farnborough

Cove

Hook

Basingstoke

Basingstoke West

North Waltham

Winchester East

Winchester South

Twyford

Eastleigh

Chandlers Ford

SouthamptonSouthampton Airport

Hedge End

Bursledon

Locks HeathFareham

Wallington

HilseaPortsmouth

Upton

Nursling

Totton

Cadnam

Avonmouth

Portishead

Weston-super-Mare

Clevedon

Burnham-on-Sea

Bridgwater North

Bridgwater South

Taunton

Wellington

Tiverton

Cullompton

Exeter Airport

Exeter East

Exeter South

Hemel HempsteadHarpenden

Luton

Toddington

WoburnMilton Keynes

Northampton West

Northampton

Northampton South

M4

Daventry

M45Crick

M1

Lutterworth

Rugby

Coventry East

Sapcote

Hinckley

Coventry

Coleshill

Stechford

Lea Marston

Tamworth East

Gravelly Hill

BIRMINGHAM

Shirley

Solihull

N.E.C.

Hockley Heath

Warwick

Royal Leamington Spa West

Royal Leamington Spa East

Gaydon

Banbury

Upper Heyford

Bicester

OxfordThame

Loudwater

Chinnor

Stokenchurch

High Wycombe

LutonAirport

Havant Catherington

Horndean

Waterlooville

Purbrook

Magor

Langstone

Newport East

Newport West

Rogerstone

Bassaleg

M4

A48(M) St Mellons

Cardiff East

Cardiff West

Pencoed

Llantrisant

St Fagans

Bridgend

Pyle

Margam SouthTaibach

Port Talbot

Neath

Briton Ferry

Llansamlet

Swansea North

Morriston

Swansea West

Pontardulais

M4

Great Barr

West Bromwich

Oldbury

Halesowen

Rubery

Bromsgrove Wythall

Alvechurch

Droitwich

Worcester North

Worcester South

Strensham

Tewkesbury

Cheltenham North

Cheltenham

Gloucester

Gloucester South

Stroud

Thornbury

Ross- on-Wye

Leicester West

Coalville

Loughborough

Kegworth

Long Eaton

Nottingham

Leicester South

East Midlands Airport

Annesley Woodhouse

Sutton-in-Ashfield

Chesterfield

Staveley

Sheffield East

Rotherham

SHEFFIELD

Sheffield North

Chapeltown

Hoyland

Barnsley

Darton

Crigglestone

Wakefield

Ardsley

Walsall

Wednesbury

Feather-stone

Wolver-hampton

Albrighton

ShifnalTelford

Hadley

Wellington

Aston

Cannock South

Cannock West

Stafford South

Stafford North

Stoke-on-Trent

Crewe

Knutsford

Holmes Chapel

Sandbach

Lofthouse

Maltby

Thorne

Blyth

Warmsworth

Bentley

Adwick-le-Street

Doncaster South

Doncaster East

Hatfield Woodhouse

Crowle

Scunthorpe

Scawby

Elsham

North Cave

Howden

Goole

Pontefract

WhitleyCastleford

Normanton

Oulton

M1

Woodlesford

Leeds East

Garforth West

Garforth East

Lymm

Altrincham West

Altrincham EastManchester Airport

StrettonDaresbury

Runcorn

Elton

Saughall Chester

Little StanneyEllesmere Port East

Ellesmere Port North

Overpool

EasthamHooton

Bidston

Prenton

Bebington

Wallasey

Channel Tunnel

Newall Green

Northenden

Wythenshawe

Cheadle West

Gatley

West Didsbury

Sale

Stretford

Trafford Park

Trafford Centre

Peel Green

Carrington

Risley

Warrington East

Worsley Walkden

Clifton Green

Prestwich

Cheadle East

Stockport West

Stockport East

Bredbury West

Bredbury

Eccles

Bridgewater WayMedlock St

Cambridge StUpper Brook St

London Rd Mottram

Hyde

Hyde West

Denton

Crumpsall

Middleton South

New Moston

Oldham South

Audenshaw

Heywood

Middleton North

Rochdale

Huddersfield

BrighouseOutlane

Denshaw

Milnrow

Bierley

Bradford

CleckheatonMorley

Gildersome

Beeston

Elland Rd

Holbeck

Holbeck West

Dewsbury Rd

Wakefield Rd

Wellington St

Westgate

Woodhouse Ln

Clay Pit Ln

Vicar Ln

Regent St

Marsh Ln

LEEDS

M1

M1

Measham

Hollins

Bury

Summerseat

Edenfield

WinwickHaydock

Ashton in Makerfield

Bryn

Warrington North

Great Sankey

WidnesRoby

LIVERPOOL

Wigan

Skelmersdale East

Skelmersdale West

Ormskirk

Maghull

Aintree

Prescot

Southdene KnowsleyHuyton with Roby

Kirkby

SpekeM62

Leyland

Standish

FarnworthBamber Bridge

Lostock HallChorley

Horwich Atherton

Bolton

Feniscowles

Blackburn South

Blackburn East

Lower Darwen

Accrington

Padiham

Hapton

Burnley West

Burnley North

Brierfield

Nelson

Colne

Preston

Malpas

Margam North

Baglan

AberavonCapel

HendreM4

Bishop’s Stortford

Newent

Waterstock

Curdworth

Burnt-wood

Lichfield West

Lichfield East

Tamworth West

M42

M42

M42

Tamworth South

Chepstow AustM48

Hunslet Belle Isle

RibbletonKirkham

FulwoodBlackpool

Lancaster North

Lancaster South

M6

M6

Carnforth East

Carnforth North

Carlisle East

Carlisle North

Carlisle South

Lazonby

Penrith

Shap

Tebay

Kendal

Kirkby Lonsdale

M6

Moffat

Crawford

Johnstonebridge

Lockerbie North

Lockerbie South

Ecclefechan

Annan

Kirkpatrick Fleming

Gretna

Abington

Larkhall North

Hamilton

Larkhall South

Kirkmuirhill

Lesmahagow

Coalburn

Uddington

BellshillCambuslang

Hillington

Braehead

Renfrew

Paisley

Glasgow Airport

Paisley West

Linwood

Erskine Bridge

Langbank

AnderstonKinning

Park

GLASGOW

Gallow-gateCowcaddens

Garnet-hill

Charing Cross

Laurieston

Thornliebank

Pollok

Crookfur

Newton Mearns

Dumbreck

M898

M77

Ibrox

GovanDennistoun

Springburn Rd

Robroyston

Stepps

Stirling South

Stirling North

Dunblane

Whitburn

Shotts

Newhouse Livingston

Bathgate

Newbridge

Kirkliston

Edinburgh

Gartcosh

Cumbernauld South

BailliestonEaster-house

BroomhouseRutherglen

Gartham-lock

Ruchazie

Philpstoun

Kincardine Bridge

Falkirk

Grangemouth

Polmont

Linlithgow

Stenhousemuir

Bonnybridge

Cumbernauld North

M8

M80

Milnathort

Kinross

Ballingry

Perth East

Kelty

Dunfermline North

Cowdenbeath

Burnside

Bridge of Earn

Perth South

M90

Perth West

Inverkeithing

Dunfermline South

M6A38(M)

M6M6

M6Toll

Micklefield

AberfordA1(M)

Oldham North

Rostherne

Castle Donington

A1(M)

M181

M180

M271

M27

A3(M)

A627(M)

M66

M67

M62

M62M62

M606

A58(M)

A64(M)

M62

Salford

MANCHESTERM602

Clayton Green

M8M8

M20M26

M20

London Colney

M25

Chorleywood

M74

M80M73

M74

M73

M8

Twyning

Ledbury

A601(M)

Redbridge

Chester-le-Street

Tyne Bridge

Manors

Camden St

Jesmond Rd

A167(M)

Great North Rd

NEWCASTLE upon TYNE

Washington South

Darlington South

Barton

A66(M)

Darlington North

Newton Aycliffe

Sedgefield

Bowburn

A1(M)

Boroughbridge

Dishforth

Walshford

KnaresboroughA1(M)

Birtley

Washington North

Pelaw

Monkton

A194(M)

A195(M)

Kingswell

Fenwick

Kilmarnock

Wetherby

A1(M)

South Milford

Beaconsfield

Cowdenbeath

Motorway

Motorway number

Motorway junction, with access to and/or from non-motorway network

Other road

Motorway interchange, no access to or from non-motorway network

Motorway interchange, with access to and/or from non-motorway network

Perth South

London Orbital

Kent

South Coast

London, Bristol & South Wales

Eastern

Northern

London & South Midlands

North Western

South Western

Trans-Pennine

Lancashire & Cheshire

Scottish

M90

KEY

M65

M5

M5

M5

M50

M54

M40

A74(M)

M55

M42

M32

M9

West Thurrock

M8

MOTORWAY MAPof

ENGLAND, SCOTLAND and WALES

Inspired byHARRY BECK’S

LONDON UNDERGROUND MAP

© Copyright 2005, 2007, 2008 G Higginswww.motorwaymap.co.uk

Printed by The Map Centre, Hereford www.themapcentre.com V3

M2

M25

Addlestone

ReigateCobham

M61

M58

M62

M8

Catthorpe



The following outlines market structure of leases and issues to be aware of.

Rent — Payable quarterly in advance. — Rental information is expressed as a rent per square foot per annum.

— Space is measured and expressed in gross internal floor area (which includes columns) with the exception of a handful of landlords that use gross external area. Landlords give tenants the right to measure and check their quoted floor areas and dispute them if different.

— The market is used to granting rent free periods as incentives. Depending on the exact market conditions and length of lease, rent free periods can vary from 0‑18 months plus.

Term lengths Standard Lease Term: Historically, leases in the UK have been long in length from 20 to 25 years. In the past 10 years, a greater level of flexibility can be obtained with normal lease lengths being between 3 and 15 years and with “options to break” built in.

Options to break: These are likely to be at five yearly intervals and will be subject to a notice period of 6‑12 months. In certain circumstances, depending upon the market conditions, some breaks will be subject to a penalty payment and may affect the incentives that can be negotiated.

Rental deposit Landlords will generally require a deposit of 3‑6 months headline rent, unless UK accounts meet certain financial tests (e.g. profits in excess of three times rental for the preceding three years). Alternative forms include bank guarantees or personal guarantees.

Rent Reviews 5‑yearly, generally upward only to open market rental value. The government did threaten to introduce legislation to impose downward review but withdrew. Market view was lease lengths had shortened, however this is an issue that is unlikely to go away.

Repairs/Reinstatement Typically leases are granted on a full repairing and insuring basis (FRI), placing full responsibility on the tenant for all parts of the property including structural, internal and external. If the property is on an estate, common area maintenance/ security etc will be recovered via a service charge. Reinstatement (dilapidations): UK leases contain stringent dilapidation/restoration clauses requiring a tenant to return the accommodation to the initial leased condition. Tenants can reduce this by rewording the lease or including a schedule of conditions.

Additional costs Other cost, other than rent, borne by the tenant include:

— Service charges: This will include a contribution to the costs of the overall maintenance of the building – generally £0.50‑£1.50 per sq ft per annum

— Municipal taxes (rates): typically amount to 40% of rental levels. These tend to be re‑valued by the Government every five years (latest 2010). The 2012/13 multiplier (Uniform Business Rate) is £0.458

— Insurance: the landlord will insure the building and re‑charge the tenant. Contents insured directly by the tenant.

— VAT: where a property is elected for VAT (Value Added Tax), which most buildings are, the costs will be subject to VAT at the prevailing rate which is presently 20%.

Additional costs — Stamp Duty Land Tax (SDLT): is based on the NPV of the rent over the (continued) lease term

— Legal Fees: Charged on an hourly basis or fixed by agreement for time.

— Agents Fees: typically 7.5‑10% of the first years rent (excluding incentives) when appointed.

Tenant improvements Usually require the formal consent of the landlord. This will usually include a specific provision requiring the property to be returned to its original condition on determination. Normally a lease can allow for non‑structural internal alterations to be carried out with the landlord’s consent. Structural and external alterations will always require the landlord’s consent (sometimes to be unreasonably withheld).

Alienation The lease will usually allow the tenant to sublease or assign its interest subject to various conditions to protect the landlord’s position.

Useful InformationCode for Leasing Business Premises - advice on a voluntary code for leasing business property. www.leasingbusinesspremises.co.uk

Capita Symonds Real Estate - available properties www.capitasymonds.co.uk/propertysearch

Energy Performance Certificates - government link epc.direct.gov.uk

market structure

http://www.leasingbusinesspremises.co.uk/

www.capitasymonds.co.uk/propertysearch

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Energyperformancecertificates/index.htm

20



big box dilemma & the 3pl challengeAndrew Smith – Director, Industrial Agency

capita group – wetherby

Capita Symonds acted on behalf of Capita Group in the letting of 160,000 sq ft in Wetherby to Lindam in 2011 at a passing rent of £4.50 per sq ft on a 7 year lease (no breaks).

Activity in the big box market is likely to be based largely around existing stock and pre‑commitments.

The internet continues to change the face of the logistics market. In 2011 it grew to about 11% of the total retail market and we will probably see industrial buildings getting bigger. We have seen two large Amazon take ups last year across the country and other large requirements in the pipeline.

In London there are now just a handful of buildings over 150,000 sq ft. It’s a reasonable expectation therefore that we’ll see some pre‑leasing this year particularly as 2011 was light on activity from the retailers.

3PL’s are struggling to find the right stock which offers modern efficiencies.The lack of development in the last 3 to 4 years has definitely impacted supply to the point where there is a demand challenge looming. New builds are now being considered for the contract led enquires if developers can make the funding work with added lease flexibility.


21


2 0 1 2 m a r k e t o v e r v i e wIndustrial & Distribution Engagement with the green agenda among occupiers and investors

continues to increase Energy Performance Certificates (EPCs) are now a mandatory requirement on marketing details. New build specifications have increased focus on sustainable features. Its not just about complying chasing a Grade A rating for the sake of it either. At Central Park (www.london‑centralpark.com) we are forecasting up to 35% savings on typical energy costs, a material saving and value add to the marketability and pricing of the scheme. The next potential move by government is to offer incentives in rates and other tax reforms to drive the green agenda harder.

continuing to greenNoel Stevens – Divisional Director, Industrial Agency

trelleborg – trowbridge

Capita Symonds, on behalf of Trelleborg, disposed of the 12 acre (100,000 sq ft) former Trelleborg site in Trowbridge for £2.1 million to DTR VMS with completion due in May 2012.


125 Shaftesbury Avenue, London WC2H 8AD t +44 (0)20 7544 2000 f +44 (0)20 7544 2222 capitasymonds.co.uk/realestate

The information provided herein is intended as a guide only and reflects “typical market practice”. Whilst we have no reason to believe that there are any inaccuracies or defects in the information provided in this report, it is constrained by the use of information and forecasts from other persons and we cannot warrant the accuracy and completeness of such information and forecasts. The information provided in this report is of a general property market nature and is provided for information purposes only.

We accept no liability for any loss or damage (including consequential or indirect loss or damage which shall include but not be limited to loss of property or of profit, business revenues or anticipated savings) of any costs, claims, demands, proceedings, expenses or liability of any nature arising directly or indirectly out of use of or access to the information and forecasts of the Report and whether or not arising from our negligence nor that of our employees or agents.

Professional, including legal advice, should be sought for specific transactions.

switzerland’s largest brownfield siteA unique opportunity to acquire one of Switzerland’s largest brownfield sites of 191 acres (77.4 hectares) with 2.45 m sq ft (228,000 sq m) of former industrial buildings.

www.swisscentral.com

Andrew SmithDirector, Agency

t +44 (0)207 544 2119m +44 (0)7919 [email protected]

James ShillabeerAssociate Director


Victoria O’BrienAssistant Surveyor


Mike StaffordBusiness Development


Noel StevensDivisional Director


Rob CassDirector, Investment


For further information, please contact:

http://www.capitasymonds.co.uk/realestate

http://www.swisscentral.com

Documents

2012 uk industrial and distribution market overview