East Midlands Industrial Property Sector Thriving Despite Brexit Say NG
3rd July 2017
Industrial: NG has its foot on the accelerator
The word ‘Brexit’ might’ve sent some sectors of the economy into mild panic, but the industrial property sector in the East Midlands is thriving – and should accelerate in the second half of 2017.
Take up over the last six months has been strong, and occupier demand continues to be strong. We’ve experienced this first hand by completing a string of industrial deals across the East Midlands, to companies who, far from being deterred by the EU Referendum, are positioning themselves for future growth by moving into high quality space.
One example of this was the sale of nearly 40,000 sq ft of industrial warehouse and industrial space to WP Power Services Ltd at Heanor Gate.
Meanwhile, the Eldon Road Trading Estate is undergoing a comprehensive refurbishment and welcomed its first new tenants. We brokered deals for fireplace manufacturing business Chesneys to move into 26,200 sq ft of space at Units 7-10. We then let a further 26,600 sq ft to Lasershape Ltd who have increased their manufacturing capacity.
And speculative development has returned the region after a local property development company started work on new starter units for growing businesses – advised by NG Chartered Surveyors.
Maplebeck Holdings, owner of the Moorgreen Industrial Estate in Eastwood, has once again ventured into the speculative development market. Their new development, known as Ash Court, is the latest addition an estate which now totals over 200,000 sq ft.
The firm, which invests as part of a regional private pension fund, has redeveloped the oldest part of the estate to provide 11 starter units totalling 11,375 sq ft in individual sizes of 1,000, 1,250 and 1,500 sq ft.
Added to this, we have substantial, high quality units under offer at Little Tennis Street and Colwick in Nottingham.
This run of deals shows that while the narrative remains that there is a lack of good quality supply across all size ranges, NG is driving the market with the entry of new development sites and big shed availability. Indeed, due the successes we are having in the industrial sector and given our positioning in the market we have been instructed on a high profile high calibre warehouse unit along the M1 corridor.
Another prime example of this is Beecroft Park at Penny Emma Way in Sutton in Ashfield. This new development shows the kind of confidence developers have, and NG has been brought on board to match up a suitable developer to bring forward what will be a prestigious new development.
Indeed, the only thing that is holding back even more speculative development is a reluctance from occupiers to commit to space in the pre-let market.
So, what’s our big prediction for the second half of 2017? It’s good news for landlords as we believe we’ll see rental growth across the high quality industrial sector as they benefit from rent reviews and lease renewals.
The US entrepreneur and retail mastermind James Cash Penney once said: “Growth is never by mere chance; it is the result of forces working together.” We believe that by landlords working with industrial specialists like NG, we can combine to drive the industrial sector forward to give occupiers the chance to expand, while at the same time grow rental income as we enter a crucial period for the local and national economy.