Newspaper article The Journal (Newcastle, England)

New Bases Cut Road Miles; Commercial Property Annual Review - Industrial Property It Has Been a Busy Year on the North-East Industrial Property Scene. Danny Cramman and Tom Bailey of GVA Lamb & Edge Review How the Market Has Moved and Take a Look at Some of the Major Schemes around the Region

Newspaper article The Journal (Newcastle, England)

New Bases Cut Road Miles; Commercial Property Annual Review - Industrial Property It Has Been a Busy Year on the North-East Industrial Property Scene. Danny Cramman and Tom Bailey of GVA Lamb & Edge Review How the Market Has Moved and Take a Look at Some of the Major Schemes around the Region

Article excerpt

Byline: Danny Cramman and Tom Bailey

RISES in interest rates led to a slowdown in demand for industrial property in the second quarter, but there is already evidence businesses have adjusted to the rate change and are back in the market.

Recent examples of freehold activity include the sales of two large units totalling 88,000sqft at Whitehouse Business Park in Peterlee, a former Enterprise Zone. Having previously stood vacant for a number of years on a leasehold basis, two units have sold in the past few months, with strong interest in a third.

In addition, Easter Developments has recently completed 127,000sqft of industrial units ranging from 4,000 to 30,000sqft. Of the 14 constructed, eight have now been let or sold, or are under offer.

At Gateshead, REIT Asset Management announced the completion of 200,000sqft of industrial space last month at the highly successful Follingsby Park.

The development now offers more than one million sqft of space, making it one of the largest distribution parks in the North-East. Both examples illustrate growing confidence in the market.

A slowdown in the investment market has meant developers have had to focus on real requirements from industrial occupiers, rather than being able to rely on selling on buildings with rental guarantees.

Demand from North-East manufacturers is particularly strong, with more than 60% having hired staff in the third quarter.

While most of the speculative development coming to the market has been aimed at distribution companies, buildings have been designed with a degree of flexibility to enable them to be adapted for manufacturing use.

Nissan is to go ahead with a pounds 4.5m expansion of its Sunderland car plant and property developer Wilton and Clugston will build a new business park on part of Nissan's Washington site.

The disposal of land by Nissan is enabling the company to develop a 200,000sqft logistics centre to handle inbound parts, which are increasingly coming from farther afield in bulk volume.

Distribution demand in Tyne and Wear area is concentrated on the A194 and A1231 corridor between the A1(M) and the A19. …

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