Industrial brochure 2015

P1 | INDUSTRIAL & LOGISTICS | UK & IRELAND | 2015

Industrial & Logistics UK and IrelandTHIRD EDITION | 2015

2015 | UK & IRELAND | INDUSTRIAL & LOGISTICS | P3P2 | INDUSTRIAL & LOGISTICS | UK & IRELAND | 2015

Introduction ..................................................................... 4

Regional overview .......................................................... 6

Belfast.............................................................................. 8

Birmingham .................................................................... 10

Bristol .............................................................................. 12

Edinburgh ........................................................................ 14

Glasgow ........................................................................... 16

Leeds ............................................................................... 18

Manchester .................................................................... 20

South East and London ................................................. 22

West London ................................................................... 24

Our global business ....................................................... 26

CONTENTS


Im pleased to launch our 2015 Industrial & Logistics brochure which is designed to give you an overview of activity in the regional industrial markets. I hope you find our latest publication informative and useful.You will have noticed that rents and freehold land values have increased significantly over the last 12 months and in some prime locations for logistics we have seen increases of up to 50% on land values. With regard to rents, we have seen prime rents in the Midlands hit 6.35 psf which has taken place at Prologis Midpoint, a new speculative unit let to Syncreon Automotive. This is obviously a significant jump as traditional rents for this type of product were in the region of 5.50-5.75 psf. This has been mirrored in other locations across the UK, particularly within the South East and also on the South Coast.

Industrial sector activity is gathering pace with widespread rental growth as occupiers seeking expansion are confronted by a serious shortage of high quality space. This is a well-known theme in the Midlands, but is increasingly apparent in most other parts of the UK. In addition to strong domestic demand that is driving the logistics and distribution markets, recent forward looking economic indicators show that manufacturing is seeing an upsurge with order books strengthening. Will the shortage of multi-let industrial space slow this upsurge as manufacturing supply chains struggle to expand? This, of course, is linked to the new development cycle which, despite positive signs, is struggling to find finance to fund new development. The signs are positive but the data is inconclusive. What is sure is that there is a growing demand for quality industrial space across geographies and industrial market segments.

Despite challenging market conditions, Im pleased to report that the Colliers International Industrial & Logistics team has been involved in approximately 45% of the largest deals (over 500,000 sq ft) across the UK in the last 12 months a snapshot of which are detailed in this publication. With extensive national coverage, the team is well-placed to offer knowledgeable occupational, development and investment advice tailored to your local market.

For an informal chat, please do not hesitate to get in touch with either myself or one of the team. I look forward to meeting you personally.

Kind regards

Len Rosso Head of Industrial & Logistics

INTRODUCTION


REGIONAL OVERVIEW


Demand for industrial/manufacturing space within Northern Ireland has traditionally tended to arise from indigenous occupiers, third party logistics companies or new entrants to the market, typically manufacturing projects secured by way of Foreign Direct Investment Projects. However, the downturn in the global economy has significantly impacted upon the Northern Ireland industrial sector.

Ian Duddy Director028 90 511 003 [email protected]

BELFAST

INVESTMENT There have been no significant industrial

investment transactions in Northern Ireland during the past 12 months.

A number of key investment properties are expected to be brought to the open market in 2015 as local investors deleverage their portfolios.

We are seeing demand from private investors and funds for well-let properties.

Weight of money in the market is pushing investors who had not considered Northern Ireland to look at opportunities.

A significant number of institutional funds who had never purchased in Northern Ireland have made an entry over the past 18 months.

OCCUPATIONAL We have seen a number of high profile

factory closures as a result of an inability to compete with Eastern Europe/the Far East on price competitiveness.

There has been a reduced level of market demand as businesses consolidate property portfolios.

There has been increased demand from indigenous occupiers for freehold properties taking advantage of competitive market conditions, i.e. buying buildings out of administration/receivership at or below build costs.

Lease terms are shorter and more flexible.

We are seeing lower rental rates as landlords compete to secure tenants.

There is no speculative development and a limited availability of modern distribution warehouse units.

SUCCESS STORIES COLLIERS INTERNATIONAL, BELFAST PROVIDED ME WITH AN EXCELLENT LEVEL OF LOCAL MARKET KNOWLEDGE AND SERVICE ON THE DISPOSAL OF OUR BUILDING IN BELFAST, BOTH IN FACILITATING A SHORT-TERM LETTING PRIOR TO THE SITE CLOSING AND IN THE SUBSEQUENT SALE OF THE FREEHOLD INTEREST. I WOULD HAVE NO HESITATION IN USING COLLIERS INTERNATIONAL AGAIN AND IAN DUDDY HAS ALREADY CO-ORDINATED AN OFFICE ACQUISITION FOR BRITVIC IN MIAMI VIA COLLIERS INTERNATIONAL, FLORIDA.

SIMON LEWIS BRITVIC

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

A74(M)

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Wake eld

Birmingham East

Sta ord

Kingston Upon Hull

ManchesterLancashire

WarringtonLiverpool

She eld

Stoke-on-Trent

Doncaster

Newcastle upon Tyne

Middlesbrough

Nottingham

Birmingham WestCoventry

Bedford

Birmingham South

Northampton

North/West

Belfast

Dublin

Peterborough

Leeds

Derby

Leicester

Cork

Bradford

Gloucester

BristolCardi

Exeter

Plymouth

Swindon

Birmingham

5.754.00

550,000

4.753.75

225,0005.004.00

350,000

5.004.00

350,000

4.003.00

175,000

4.503.50

275,000

5.004.00

300,000

4.753.50

225,000

4.253.25

200,000

5.004.00

325,000

4.503.50

250,000

5.004.00

300,000

5.003.25

200,000

1.50300,000

4.503.00

120,000

2.504.00

125,000

5.253.25

200,000

5.754.25

325,000

6.254.50

500,000

6.004.25

475,000

5.503.25

300,000

6.004.50

500,0006.154.50

500,000

6.254.25

475,0005.753.50

300,000

5.503.50

300,000

5.004.00

350,000

3.505.50

175,000

4.503.50

250,000

5.003.75

300,000

4.002.75

200,000

4.753.25

225,000

4.753.25

260,000

4.753.25

250,000

6.003.75

300,000

BRITVIC

Northern Irelands largest industrial disposal in 2014

Secured temporary income for client leasing unit for NBC Universal Film, Dracula Year Zero

Sold property for 40% beyond initial sale guide price

FERGUSON

Investment sale Co-ordinated the letting and

sale of the property on behalf of the Fixed Charge Receiver

Sold property for a yield reflecting c.7.4%

KEY MARKET DEALS

OCCUPIER PROPERTY ADDRESS SIZE TENURE

Private Purchaser 468-472 Castlereagh Road, Belfast 125,000 sq ft Freehold sold with vacant possession

Screwfix Springtown Industrial Estate, Derry 6,000 sq ft Leasehold

Screwfix Unit 1 Millennium Way, Lurgan 7,000 sq ft Leasehold

KEYPRIME RENTS New accommodationSECONDARY RENTS Early 1990s accommodationLAND VALUES PER ACRE


INVESTMENT There is huge demand from investors and

funds for well-let product which is driving yields downwards.

Yields in the Midlands are at c.5% for prime stock which is back to pre-recession levels.

Funds are back in the market to speculatively develop through development partnerships/funding agreements in prime locations.

The UK, and in particular the West Midlands market, are seen as a safe haven for UK and foreign funds to invest in the industrial and logistics market.

OCCUPATIONAL Rents in prime locations continue to rise

and we are seeing record rents being set on brand new buildings in excess of 6 psf.

Tenant incentive packages are reducing due to limited stock levels of existing buildings.

There is a distinct lack of Grade A space and oven ready sites in prime locations which is driving land values upwards.

Large development sites are attracting premium land values and developers are keen to develop out rather than sell to single occupiers.

Developers are continuing to look at speculative development on a measured basis in prime locations.

Occupiers such as retailers and large 3PLs are struggling to find sites to satisfy their larger requirements over 300,000 sq ft.

Jaguar Land Rover and its associated supply chain continue to take space in large tranches which is putting further pressure on stock levels.

The West Midlands industrial and warehouse market has witnessed another fantastic year of activity and growth with a number of sectors leading take-up including the automotive sector and retailers, in particular those with a strong internet base. Developers are seeing the fruits of their labour; with those who are brave enough to speculatively develop achieving early lettings and record rental values.

Sam RobinsonSenior Surveyor0121 265 [email protected]

BIRMINGHAM

SUCCESS STORIES SINCE WE APPOINTED COLLIERS A NUMBER OF YEARS AGO, THEY HAVE PROVIDED US WITH AN EXCELLENT SERVICE HAVING COMPLETED A NUMBER OF TRANSACTIONS. THE MOST RECENT IN NOTTINGHAM WAS EXTREMELY TIGHT IN TERMS OF TIMESCALES AND WE FOUND THEIR LOCAL EXPERTISE INVALUABLE IN HELPING US COMPLETE THE PROJECT WITHIN THE REQUIRED PERIOD. THEIR IN-DEPTH KNOWLEDGE OF THE SECTOR ENABLES US TO FORMULATE APPROPRIATE STRATEGIES FOR THE BUSINESS.

ANDY SMITH SRCL

BIRCH COPPICE

Instructed by IM Properties to market plots on an established 400-acre rail-linked distribution park

Agreed one of the largest pre-lets in the Midlands for a new 780,000 sq ft distribution facility to Euro Car Parts

GRAVELLY INDUSTRIAL PARK

Instructed by Standard Life Investments to dispose of the vacant units on this prime 1.1m sq ft multi-let industrial estate in Birmingham

Located less than half a mile from Junction 6 of the M6 motorway

Simon NortonDirector0121 265 [email protected]

Peter MonksAssociate Director 0121 265 [email protected]

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

A74(M)

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

WarringtonLiverpool

She eld

Stoke-on-Trent

4.753.75

225,0005.004.00

350,0005.003.25

200,000

4.503.50

250,000

4.50

4.00

6.25

5.50

5.00

DerbySta ord

5.253.25

200,000

Nottingham5.754.25

325,000

5.503.25

300,000

A1(M)

M1

Birmingham EastBirmingham West

BedfordNorthampton

North/West

PeterboroughBirmingham

5.754.00

550,000

6.254.50

500,000

Leicester6.004.25

475,000

Coventry6.004.50

500,000M5

Birmingham South6.154.50

500,000

6.254.25

475,000

5.753.50

300,000

5.503.50

300,000 5.004.00

350,000

KEY MARKET DEALS

OCCUPIER PROPERTY ADDRESS SIZE TENUREUPS Plot 2 Birch Coppice, Tamworth 152,500 sq ft Leasehold

Great Bear Freeston Drive, Blenheim Industrial Estate, Nottingham 208,409 sq ft Freehold

Norbert Dentressangle Bigfoot Royal Oak Industrial Estate, Daventry 1,000,000 sq ft Leasehold


LOCAL AUTHORITIES NEED TO ACT QUICKLY TO ENSURE THERE IS AN ACCESSIBLE PIPELINE OF GOOD QUALITY SITES TO HELP THE CONTINUED SUCCESS STORY OF THE WAREHOUSE / INDUSTRIAL MARKET IN THE MIDLANDS REGION.

SIMON NORTONCOLLIERS INTERNATIONAL | INDUSTRIAL & LOGISTICS


Renewed economic confidence has boosted property activity throughout the South West and South Wales region. Enquiry levels are at their highest since 2007/2008 both in terms of leasehold and freehold demand and this is reflected in the increased take-up stats for 2014. Looking forward we anticipate this trend will continue throughout 2015 and beyond, even allowing for a post-election blip.

Tom WatkinsGraduate Surveyor0117 917 [email protected]

BRISTOL

INVESTMENT The significant amount of money in the

investment market is well-documented. Not only are the UK funds awash with money but there are huge inflows of cash from overseas investors, especially sovereign wealth funds.

Traditionally one of the higher yielding investment stocks, industrial investment opportunities are highly prized assets and with competition at record levels, especially for well-let indexed linked opportunities, prices continue to improve with yields hardening.

The lack of stock is encouraging some investors to look at speculative land purchase and development in an effort to create investments and this is likely to continue for the foreseeable future.

Investor demand is strong across a broad spectrum of industrial stock and we are now beginning to see a number of deals take place where opportunistic investors are capitalising on an improving market to sell assets at healthy margins over their purchase price.

OCCUPATIONAL As ever with the cyclical nature of the

commercial property market there is a danger that a sustained period of growth may be diverted by an imbalance between supply and demand.

The region is fast reaching this tipping point and with supply levels reducing week on week, this point is fast approaching.

Landlords are beginning to hold the upper hand in negotiations and not surprisingly rental levels are increasing and incentive packages are reducing. Lease terms are also lengthening.

Similarly, an almost complete lack of freehold units means that capital values are already at pre-recession levels.

Buoyed by this scenario and with funding more readily available, its inevitable that speculative demand will return, although at this stage it will only be for prime locations within the region.

SUCCESS STORIES COLLIERS WERE FUNDAMENTAL IN HELPING US COMPLETE A DEAL TO RENT OUT SURPLUS COLD STORAGE CAPACITY. FROM INITIAL NEGOTIATIONS TO AGREE RENTS THROUGH TO FINALISATION OF THE LEASE, THEY WERE ALWAYS AVAILABLE TO DISCUSS PROBLEMS AND CONCERNS, AND THEIR ADVICE INVALUABLE.

TONY OVERS BRITPART

UNIT 3 AVONMOUTH INDUSTRIAL ESTATE

Acquired 50,000 sq ft unit in Avonmouth on behalf of Ocado

Negotiated a 15-year lease at a rent of 4.25 psf

BEECHES INDUSTRIAL ESTATE

Disposed of 35,000 sq ft Let to Smart Packaging for a

term of 10 years at a rent of 6 psf

Tim DaviesDirector0117 917 [email protected]

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

M9

M77

A74(M)

M8 M8

M90

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Gloucester

BristolCardi

Exeter

Plymouth

Swindon

5.75

4.755.00

5.00

4.00

4.50

5.00

4.75

5.00

4.50

5.00

5.00

4.50

4.50

5.50

4.502.00

3.00

4.50

4.50

6.25

5.003.75

300,000

4.002.75

200,000

4.753.25

260,000

Cork

3.254.75

225,000

4.753.25

250,0006.003.75

300,000

5.00

5.50

5.00

A38

KEY MARKET DEALS

OCCUPIER PROPERTY ADDRESS SIZE TENURE

The Range Former Morrisons RDC, Cribbs Causeway 385,000 sq ft Leasehold

Farm Foods Unit 5, Central Park, Western Approach 175,000 sq ft Freehold

Stapleton Tyres Ltd Number One, Portbury 86,000 sq ft Leasehold

Yodel Ash Ridge Road 53,115 sq ft Leasehold



INVESTMENT There is a weight of money within the

market.

Newbridge One Roxhill Developments sold at closing date to AXA IM at 5.75%.

Prestonfield Park saw two rounds of closing dates and is under offer at c.10,000,000 6%.

Closing dates also seen on various opportunities in West Lothian.

Looking further north, Aberdeen industrial is still strong, despite downturn in oil price.

OCCUPATIONAL Geopost has secured a 60,000 sq ft

pre-letting of the Roxhill Edinburgh Development at a rental of 8.20 psf.

Trade counter occupier interest still strong.

Supply levels dropping across all market sectors.

Still little sign of speculative development in the pipeline.

Further design and build pre-lets anticipated.

A distinct shortage of development land is zoned for industrial.

THE APPETITE FOR SMALLER SHEDS (10-30,000 SQ FT) IMPROVED BY 23% AND UNDER 10,000 SQ FT ARE UP BY A HEALTHY 37%, WHICH SHOWS A RISE IN DEMAND FOR THE SECOND SUCCESSIVE YEAR IN SCOTLAND.

BO GLOWACZCOLLIERS INTERNATIONAL | RESEARCH & FORECASTING

2014 marked the strong return of the industrial market within Edinburgh and the East Coast of Scotland. Robust take-up, together with dwindling supply, bodes well for potential future rental growth. Pre-letting activity has returned with the recent 60,000 sq ft letting to Geopost at Newbridge. J Smart & Company (Contractors) have completed Phase 1 of West Edinburgh Business Park, a speculative scheme extending to 22,000 sq ft.

EDINBURGH

SUCCESS STORIES IN 2006 WE REQUIRED ADVICE ON A BUSINESS OPPORTUNITY IN SCOTLAND. THE COLLIERS EDINBURGH OFFICE WAS RECOMMENDED TO US AND YEARS LATER WE ARE STILL USING THEM FOR ADVICE ON A NUMBER OF PROJECTS. THEIR ADVICE HAS HELPED THE ST FRANCIS GROUP GROW A PROFITABLE PORTFOLIO OF SITES AND INVESTMENTS IN SCOTLAND. THE TEAM HAS ALWAYS DELIVERED A PROFESSIONAL, PERSONABLE AND EFFICIENT SERVICE.

GRAHAM CROWE ST FRANCIS GROUP

NEWBRIDGE

Acquired a 12.5 acre site in February 2013

Pre-let to DPD/Geopost (60,000 sq ft)

Investment sold to AXA for 8.1m 5.75%

Remaining 6 acres of serviced land currently on the market

SPRINGKERSE

Initially retained by Allan Water Developments to provide marketing advice

Investment sold to Goldcrest Properties for 6.5m

Subsequently retained by Goldcrest Properties to re-let 11,000 sq ft in an off-market deal at 9.50 psf

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

M9

M77

A74(M)

M8 M8

M90

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Birmingham East

Sta ord

WarringtonLiverpool

She eld

Stoke-on-TrentNottingham


Bedford

Birmingham South

Northampton

North/West

Dublin

Peterborough

Aberdeen

Dundee

Edinburgh

Fife

Glasgow

Inverness

Stirling

Derby

Leicester

Cork

Bristol

Exeter

Plymouth

Swindon

Birmingham

5.754.00

550,000

4.753.75

225,0005.004.00

350,000

4.503.50

250,0005.003.25

200,000

4.501.50

300,000Livingston

4.502.00

125,000

Bellshill5.503.00

125,000

5.503.00

125,000

4.502.00

80,0002.001.50

50,000

3.002.00

80,000

4.503.00

300,000

4.502.00

300,000

2.504.00

125,000

5.253.25

200,000

5.754.25

325,000

6.254.50

500,000

6.004.25

475,000

5.503.25

300,000

6.004.50

500,0006.154.50

500,000

6.254.25

475,0005.753.50

300,000

5.503.50

300,000

5.004.00

350,000

3.505.50

175,000

5.003.75

300,000

4.002.75

200,000

4.753.25

260,000

6.003.75

300,000

Cumbernauld

5.002.50

75,000

East Kilbride5.002.50

75,000

KEY MARKET DEALS

OCCUPIER PROPERTY ADDRESS SIZE TENUREYodel/Scot Tyres Unit 8 Newbridge 40,000 sq ft Freehold

Crest Property Unit 11 Springkerse 9,400 sq ft Leasehold

Scottish Enterprise Unit 6 Central Park 60,000 sq ft Leasehold

William Tracey Unit 6 Newbridge 60,000 sq ft Freehold

Roxhill/Geopost Newbridge One 60,000 sq ft Leasehold


Bryce StewartDirector0131 240 [email protected]


The West of Scotland industrial market continued to improve in 2014 and this positive trend is set to continue in 2015 with economic growth and positive business sentiment resulting in increased demand and transactional activity as businesses expand or seek more suitable premises.

In the West, the majority of demand continues to be focused around the M74 and M8 corridors in locations such as Hillington, Queenslie, Glasgow Business Park, Cambuslang, Bellshill and Eurocentral.

The lack of new development remains a concern as businesses face shortages of suitable accommodation as they consider expansion or relocating from older obsolete buildings.

Iain DavidsonDirector0141 226 [email protected]

GLASGOW

INVESTMENT Industrial remains high on investors buying

requirement lists, with activity from institutional through to occupational buyers.

The largest deal in the West saw Patrizia take control of Hillington Park as part of a wider portfolio acquisition from MEPC.

Lack of larger estates (10m+) under one ownership make it a difficult market for institutions to find stock.

Strong demand for multi-let industrials remains, although strongest activity is being seen in single let distribution.

Recent investor activity has seen Eurocentral emerge as the prime target for money looking to invest in distribution with equivalent yields at c.6.75-7%.

Market sentiment would suggest speculative development will be a feature of 2016 as supply begins to diminish.

OCCUPATIONAL Demand for small units of 1,000 to

5,000 sq ft remains strong.

There has been a sharp increase in demand for mid-sized buildings of 20,000 to 70,000 sq ft.

Demand is across a wide spectrum of sectors such as engineering, oil & gas, food & drink, storage & distribution and general manufacturing.

The sustained growth of e-commerce has resulted in a notable increase in activity from parcel delivery companies with most of the main players in this sector having live requirements of between 30,000 and 50,000 sq ft.

SUCCESS STORIES THE CO-OPERATIVE ESTATES INSTRUCTED COLLIERS INTERNATIONAL IN 2013 TO DISPOSE OF ITS NATIONAL PORTFOLIO OF 21 SURPLUS WAREHOUSE PROPERTIES TOTALLING CIRCA 3M SQ FT. THE BUILDINGS RANGE IN SIZE FROM 15,000 TO 300,000 SQ FT. IT IS FAIR TO SAY THAT THE COLLIERS TEAM LED BY IAIN DAVIDSON SURPASSED OUR EXPECTATIONS ON THIS PROJECT BY EXCEEDING OUR DISPOSAL TARGETS IN LINE WITH BUDGET AND CORPORATE TIME FRAMES. THE PROJECT INVOLVED COLLIERS PLATFORM OF UK OFFICES AND INVOLVED SALES, LETTINGS, ASSIGNMENTS AND SUB-LEASES, WITH OVER 2M SQ FT ALREADY TRANSACTED.

MATTHEW BRUMPTON THE CO-OPERATIVE ESTATES

PROLOGIS M8

Pre-let a 504,000 sq ft warehouse to The Cooperative on behalf of Prologis

Also secured a pre-let with Brake Bros for a new purpose-built 172,633 sq ft multi-temperate distribution centre

THE CO-OPERATIVE ESTATES

National instruction to dispose of more than 3m sq ft across more than 20 properties, ranging in size from 10,000 sq ft to 320,000 sq ft

A well-executed marketing strategy has resulted in more than 2m sq ft transacted to date

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

M9

M77

A74(M)

M8 M8

M90

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Birmingham East

Sta ord

WarringtonLiverpool

She eld

Stoke-on-TrentNottingham


Bedford

Birmingham South

Northampton

North/West

Dublin

Peterborough

Aberdeen

Dundee

Edinburgh

Fife

Glasgow

Inverness

Stirling

Derby

Leicester

Cork

Bristol

Exeter

Plymouth

Swindon

Birmingham

5.754.00

550,000

4.753.75

225,0005.004.00

350,000

4.503.50

250,0005.003.25

200,000

4.501.50

300,000Livingston

4.502.00

125,000

Bellshill5.503.00

125,000

5.503.00

125,000

4.502.00

80,0002.001.50

50,000

3.002.00

80,000

4.503.00

300,000

4.502.00

300,000

2.504.00

125,000

5.253.25

200,000

5.754.25

325,000

6.254.50

500,000

6.004.25

475,000

5.503.25

300,000

6.004.50

500,0006.154.50

500,000

6.254.25

475,0005.753.50

300,000

5.503.50

300,000

5.004.00

350,000

3.505.50

175,000

5.003.75

300,000

4.002.75

200,000

4.753.25

260,000

6.003.75

300,000

Cumbernauld

5.002.50

75,000

East Kilbride5.002.50

75,000

KEY MARKET DEALS

OCCUPIER PROPERTY ADDRESS SIZE TENUREPremier Pan-European 5 Wardpark Road, Cumbernauld 265,000 sq ft Freehold

Brakes Prologis, M8 172,633 sq ft Leasehold

Langdons 10 Coddington Cres, Eurocentral 82,500 sq ft Freehold

DFS 120 Springhill Parkway, Glasgow Business Park 65,000 sq ft Leasehold



2014 saw strong transactional activity, with further take-up of the legacy distribution units of the 2009 peak. Demand and transaction levels have greatly strengthened, leading to contracting supply of quality accommodation across all size ranges.

Speculative development has begun in the key strategic development locations within Yorkshire. Given the restricted supply, we envisage that rental growth will be seen across all size ranges for Grade A accommodation.

Jonathan McGraelAssociate Director0113 200 [email protected]

LEEDS

INVESTMENT Weight of money has vastly increased in the

market.

Dwindling supply of Grade A space, coupled with the ever strengthening economy, is driving demand and resulting in rental growth in the sector.

Due to lack of supply, product fundamentals (spec and location) are driving yields more so than income stream.

Yields have hardened considerably with very strong demand for Grade A big box distribution and large multi-let estates.

Prime yields:

Gateshead: quality multi-let estate of 24 units totalling 180,430 sq ft. Purchased by UK Land at c.6.9% a big shift from the 8.50% quoting price

Wincanton, Phases I & II Trax Park, Doncaster: two neighbouring, modern Grade A big box distribution facilities totalling 308,500 sq ft, purchased by Mayfair Capital at 6.3%

OCCUPATIONAL Take-up in 2014 for modern big box units

(Grade A, 100,000 sq ft plus) was 1.62m sq ft.

The largest transaction was a 689,000 sq ft new build distribution facility agreed by Next at G Park, Doncaster.

Speculative development is focused around the Leeds City Region Enterprise Zone, with Muse Developments building 80,000 sq ft and Wilton Developments building two units of 30,000 sq ft and 50,000 sq ft at Connex30 and Connex50.

Larger speculative development is planned at Wakefield Europort, with 133,000 sq ft to be built by a Mountpark/Stoford JV at Mountpark, Wakefield and 140,000 sq ft to be built by a Kier Property, Maplegrove Developments and Yorvale JV at TriLink 140. It has also just been confirmed that Verdion will commence speculative development at iPort, Doncaster in September 2015 with two units of 200,000 sq ft and 120,000 sq ft respectively.

THE INDUSTRIAL AGENCY TEAM AT COLLIERS HAS GOT TO KNOW OUR PORTFOLIO INSIDE OUT AND ARE ON HAND TO RESPOND TO US QUICKLY WHEN REQUIRED, PROVIDING US WITH MARKET LEADING ADVICE.

CAMPBELL CARRUTH HARWORTH ESTATES

Robert WhatmuffDirector0113 200 [email protected]

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

A74(M)

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Wake eldKingston Upon Hull

She eld

Doncaster

Newcastle upon Tyne

MiddlesbroughBelfast

Dublin

LeedsBradford

4.003.00

175,000

4.503.50

275,000

5.004.00

300,000

4.253.25

200,000

5.004.00

300,000 5.004.00325,000

4.503.50

250,000

4.503.00

120,000

4.00

3.505.50

175,000

4.503.50

250,000

5.00

KEY MARKET DEALSOCCUPIER PROPERTY ADDRESS SIZE TENUREGreat Bear Distribution LPP Sheffield, Shepcote Lane, Sheffield 412,518 sq ft Leasehold

Victoria Plumb V277, Firstpoint, Doncaster 277,232 sq ft Leasehold

Coveris Rigid Drum 1, Drum Industrial Estate, Durham 266,885 sq ft Leasehold

WH Malcolm Latitude 135, Castleford 135,172 sq ft Leasehold

Speedyhire Unit C Trident Park, Normanton 38,000 sq ft Leasehold

SUCCESS STORIES

V3 FIRSTPOINT BUSINESS PARK

Instructed to let a new 277,000 sq ft warehouse on behalf of our client, Standard Life, at the V3 Firstpoint Business Park in Doncaster

A successful letting was achieved to Victoria Plumb

ADVANCED MANUFACTURING PARK

On behalf of Rotherham MBC, agreed the sale of a 30,000 sq ft unit to X-cel Superturn, precision engineering specialists

Void costs were minimised and the park continues to grow as a major advanced manufacturing location



The latest from the North West industrial market is the long awaited news that we will see some major speculative development in Q3/Q4 2015. The likes of Marshall, Wilson Bowden, Canmoor and Graftongate are amongst a group of developers who are committing to schemes. However, requirements from 300,000 sq ft upwards will remain challenging and will have no option but to go down the build to suit route to procure a building.

Andy BackhouseAssociate Director0161 831 [email protected]

MANCHESTER

INVESTMENT The continued tenant demand and lowering

of vacancy rates is helping to underpin the rental growth prospects for industrial and logistics within the North West of England.

The prospects of rental growth, combined with an increased weight of money for the sector, has meant that yields have fallen as the demand supply equation has shifted in favour of the seller. This shift is particularly pronounced in both the multilet/short income end of the market as well as in the long let big box sector.

There are now some investors seeking land opportunities due to the lack of stock in order to develop out sites and create their own product.

OCCUPATIONAL Canmoor is on site constructing a brand

new 63,580 sq ft unit in Trafford Park, Manchester. Completion is July 2015.

HSS has agreed a pre-let on 40,000 sq ft in Trafford Park, Manchester.

Peel Logistics announces a pre-let of 280,000 sq ft to Culina Logistics at Port Salford.

B&M agreed terms on a 350,000 sq ft distribution centre at Onyx 350 in Runcorn.

There are numerous unsatisfied requirements in the North West including Poundland, JD Wetherspoons and Misguided.

Hut Group commits to a 680,000 sq ft facility at The Miller Developments Omega scheme, Warrington.

SUCCESS STORIES COLLIERS OFFERS A FIRST CLASS SERVICE AND I WOULD BE HAPPY TO RECOMMEND THEM TO ANY COMPANY LOOKING TO LET OR SELL AN INDUSTRIAL UNIT IN THE NORTH WEST. THEY HAVE ACTED FOR US FOR A NUMBER OF YEARS AND TENACIOUSLY CHASE DOWN ENQUIRIES IN WHAT CONTINUES TO BE A CHALLENGING MARKET. THEY HAVE HELPED US KEEP OUR VOID LEVELS TO A MINIMUM AND ENABLED US TO DRIVE OUR RENTS IN THE RIGHT DIRECTION.

PAUL DOBSON MILLFIELD ESTATES

OMNICELL

60,000 sq ft acquisition for a new European HQ

Extensive refurbishment programme managed for the client

200 jobs created

OMEGA, WARRINGTON

Acquisition of a 235,000 sq ft industrial unit on a design and build basis

Additional 8 acres of expansion land also acquired

Biggest manufacturing acquisition of 2014

Julien Kenny-LevickDirector0161 831 3371 [email protected]

M6

M6

M61

M54 M6 Toll

M1

M6

M53

M60

M55M65

M66M62

M1 M18M180

M62

A1(M)

A1(M)

M57

A1(M)

A74(M)

M45

M20

M25

M20

M50

M5

M11

A1(M)

M40

M2M26

M23

M27

M3

M4

M5

M5

M4

M42

M1

A50

A38

A1

A1

A1

A14

A14

A38

A38

A38

Wake eldKingston Upon Hull

ManchesterLancashire

WarringtonLiverpool

She eld

Stoke-on-Trent

Doncaster

Newcastle upon Tyne

MiddlesbroughBelfast

Dublin

LeedsBradford

4.753.75

225,0005.004.00

350,000

5.004.00

350,000

4.003.00

175,000

4.503.50

275,000

5.004.00

300,000

4.753.50

225,0004.253.25

200,000

5.004.00

300,000

5.003.25

200,000

5.004.00

325,000

4.503.50

250,000

4.503.00

120,000

4.00

6.25

3.505.50

175,000

4.503.50

250,000

5.00

Derby

Leicester

Sta ord5.253.25

200,000

Nottingham5.754.25

325,000

6.004.25

475,000

5.503.25

300,000

KEY MARKET DEALSOCCUPIER PROPERTY ADDRESS SIZE TENUREBidvest Frazer Road, Trafford Park 200,000 sq ft Leasehold

DHL XL, Skelmersdale 465,000 sq ft Leasehold

Culina Logistics Port Salford, Salford 280,000 sq ft Leasehold



INVESTMENT LondonMetric has sold the former Tesco

Distribution Centre, now let to Tritax for 37.2m.

Tritax has agreed to forward fund a new distribution warehouse totalling 593,425 sq ft on a 35-acre site in Erith. The unit is being built to a high specification including 72 dock and 16 level loading doors. The unit is pre-let to Ocado.

John Lewis has agreed to pre-let its third distribution centre on Magna Park, Milton Keynes. The unit will extend to approximately 635,000 sq ft. Standard Life has agreed to forward fund the opportunity for 85m reflecting a net initial yield of 4.2%.

OCCUPATIONAL Take-up has radically improved in London

and the South East over the past 12 months.

Stock levels are at an all time low with competition in London in particular from alternative uses such as residential development.

The imbalance between supply and demand is causing incentives to decrease and rents to rise.

There is still limited speculative development due to the competition for sites from alternative uses which, outside residential, includes the discount food retailers and owner occupiers.

THERE IS AN URGENT NEED FOR MORE STOCK IN LONDON AND THE SOUTH EAST. DEMAND FOR NEW DISTRIBUTION PRODUCT ROSE SHARPLY, UP BY 21% YEAR ON YEAR, WITH DESIGN AND BUILD AS THE MAIN DRIVER.

BO GLOWACZCOLLIERS INTERNATIONAL | RESEARCH & FORECASTING

414A

12A

12A

43A

942A

52A

922A

62A

22A42A

462A

303A

21A

131A

223A

43A

43A44A

553A

314A

314A

0104A

721A

21A

414A

031A

414A

13A

42A 32A

272A

404A

01A

414A

14A

14A

272A

721A

31A

2A

62A

3A

13A

933A

2414A

024A

04A

12A

62A

382A

952A

952A

952A

72A

22A72A082A

72A 72A

224A

6A

01A

A 05 5

505A

6414A

021A505A

5A

124A

62M

)M(923A

11M

52M

52M

02M

2M

02M

4M

3M

04M

1M

)M(1A

11M

Banbury Milton Keynes

Dunstable

Hemel Hempstead

Basildon

MaidstoneBasingstoke

Southampton

Andover

Didcot

75.

850

Luton.0000,000

5.754.00

550,000

6.504.00

500,000

7.506.00

600,000

7.005.00

550,000

6.254.50

500,000

6.755.50

6.755.25

600,000

6.005.00

750,000

7.255.50

850,000

8.256.50

1,000, 000

600,000

WE HAVE WORKED WITH COLLIERS INTERNATIONAL FOR A NUMBER OF YEARS BECAUSE THEY UNDERSTAND OUR BUSINESS NEEDS AND DELIVER A HIGH QUALITY SERVICE.

NIGEL MACDERMID ASDA STORES

A continued lack of speculative development has caused the market to experience high levels of competition both in Central London and the outskirts. The South East market continues to attract a vast number of occupiers, though the market continues to face healthy competition from alternative uses.

James HaestierDirector020 7344 [email protected]

SOUTH EAST AND LONDON

SUCCESS STORIES

CROSSDOX

Advised Ocado on the acquisition of a new CFC, assisting in site selection and negotiation of terms to deliver one of the largest distribution centres within the M25

Also, advised on a 30-acre site to develop in excess of 560,000 sq ft as part of Ocados continued expansion programme

PLOT 320 MAGNA PARK

Advised on the leasehold design and build negotiations for Waitroses first 900,000 sq ft national distribution centre

Successfully secured a pre-let long leasehold deal, allowing development to quickly begin

Steven MitchellDirector020 7344 [email protected]

William BellmanDirector020 7344 [email protected]

SOUTH EAST

Barking

8.006.00

900,000

Dagenham

7.005.50

700,000

West Thurrock

7.756.00

750,000

Dartford

7.756.00

750,000

En eld

9.006.50

1,000,000,

Nottingham5.754.25

325,000

GREATER LONDON

KEY MARKET DEALSOCCUPIER PROPERTY ADDRESS SIZE TENUREOcado Crossdox, Bronze Age Way, Erith 563,103 sq ft Leasehold

Pilgrims Unit 8, Orchards Business Park 49,000 sq ft Leasehold

Selco Unit 1, Orchards Business Park 28,229 sq ft Leasehold

ASDA DDC160 Sandpit Road, Dartford 160,000 sq ft Freehold

ASDA Titan, Cranford Lane, Heathrow 10 acres Freehold

Europa Logistics Europa Logistics, Littlebrook, Dartford 223,000 sq ft Leasehold (pre-let)

Waitrose Plot 320 Magna Park, Milton Keynes 900,000 sq ft Leasehold



The West London industrial market saw consistent demand for product during the second half of 2014 but overall annual take-up fell by circa 10% year on year. Shortage of new product and modest development activity meant that transactions for new/refurbished accommodation accounted for just 12% of overall take-up across the entire West London market.

Colliers International acquired 121,000 sq ft on behalf of Ocado and Mash Purveyors on SEGROs West London flagship development, Origin, Park Royal. Both businesses required modern, well-located and efficient industrial facilities from which to operate in order to meet the needs of the growing population in London, coupled with the rise in online retailing.

WEST LONDON

INVESTMENT There has been a lack of recent activity with

regard to West London single-let transactions. Notwithstanding this, if the right product came to the market, we expect excellent demand from buyers and a net initial yield that could break 5%.

The flurry of outer London multi-let estates that came to the market in mid and late 2014 appears to have eased off slightly. The most recent multi-let industrial transactions in the Western sector include:

Waterway Park, Hayes 139,970 sq ft let to 7 tenants with 2

vacant units. Understood to be under offer to a fund at c.24m / 5.25%.

Langley Park 9 units fully let to 6 tenants at a rent of

11.87 psf. 18m / 5.5%.

OCCUPATIONAL Availability levels have fallen sharply across

West London to 6% compared to 9.1% in 2013 and 11.7% in 2012. In Q2 2014 it stood at 3.9 million sq ft, as compared to 5.3 million sq ft at the end of 2013.

Average headline rents in West London rose by 6.8% during 2014 which is in line with the UK national average.

Hayes saw prime rents climb by 20% during 2014 as shortage of suitable product put further upward pressure on occupational costs, while Sunbury rents increased by 14.3% to 12 psf.

The highest rent in the UK for industrial property remains at Heathrow, which currently stands at 15 psf.

SUCCESS STORIES COLLIERS INTERNATIONAL WAS RECENTLY INVOLVED IN THE LETTING OF 106 BRENT TERRACE. THE TEAMS STRATEGIC THINKING AND PROACTIVE APPROACH, ENABLED THE CONSOLIDATION OF A MULTI-LET INDUSTRIAL ESTATE TO ONE NATIONAL OCCUPIER. THE RESULT WAS A VASTLY IMPROVED FINANCIAL COVENANT THAN INHERITED AT PURCHASE. THE EXPERTISE AND PROFESSIONALISM OF COLLIERS DURING THE NEGOTIATION PROCESS WAS OF PARTICULAR CREDIT.

MATTHEW NEAL CAPCO

PARKWAY POINT HESTON

Advised Bericote on the sale/letting of a 14,610 sq ft high spec warehouse unit prior to planning consent. Following our advice they took the decision to spec build the unit. The unit was sold within four weeks, setting an excellent level for freehold sales in the location

106 BRENT TERRACE BRENT CROSS

Instructed by CAPCO to dispose of this leasehold interest. We successfully completed the letting of the entire site, totalling three units, to one national occupier, achieving a considerable uplift in rental value

WEST LONDON

A20

A105

A406

A3220 A4202

A205

A102

A10

A10A503

A501

A3A100

A406

A2

A202

A308

A41

A1

A1

A40

A12

A40

A1

A41

A2

A13

A12

A406

A503

A13

A11

A205A316

A4

A41

A406M1

M4

M11

Acton

Park RoyalBarking

Canning Town

Woolwich

Dagenham

Wembley

Staples Corner1

2

4

4

5

12

A30

A316

A30

A308

A30

A4

A4

A308

A312

M25

M4

M3

M25

Feltham

West Drayton

Hayes

Sunbury

Greenford

PoyleHeathrow

12/2

13

14

1

3

4

4A

Uxbridge

11.508.50

1,400,000

11.509.00

1,300,000

8.506.50

950,000

9.506.50

950,000

12.008.50

1,600,000

13.7510.00

2,000,000

12.009.00

1,500,000

12.007.50

1,500,000

11.008.50

1,500,000

14.0010.00

1,800,00015.0010.50

2,000,000

12.008.75

1,500,000

11.007.50

1,400,000

12.0010.00

2,000,000

11.008.00

1,300,000

12.008.50

1,400,000

Dartford7.756.00

750,000

West Thurrock

7.756.00

750,000

Akhtar Alibhai Director020 7344 [email protected]

Patrick RossoDirector01895 [email protected]

Ross RaySurveyor01895 [email protected]

Simon QuineSurveyor01895 [email protected]


GREATER LONDON

A20

A105

A406

A3220 A4202

A205

A102

A10

A10A503

A501

A3A100

A406

A2

A202

A308

A41

A1

A1

A40

A12

A40

A1

A41

A2

A13

A12

A406

A503

A13

A11

A205A316

A4

A41

A406M1

M4

M11

Acton

Park RoyalBarking

Canning Town

Woolwich

Dagenham

Wembley

Staples Corner1

2

4

4

5

12

A30

A316

A30

A308

A30

A4

A4

A308

A312

M25

M4

M3

M25

Feltham

West Drayton

Hayes

Sunbury

Greenford

PoyleHeathrow

12/2

13

14

1

3

4

4A

Uxbridge

11.508.50

1,400,000

11.509.00

1,300,000

8.506.50

950,000

9.506.50

950,000

12.008.50

1,600,000

13.7510.00

2,000,000

12.009.00

1,500,000

12.007.50

1,500,000

11.008.50

1,500,000

14.0010.00

1,800,00015.0010.50

2,000,000

12.008.75

1,500,000

11.007.50

1,400,000

12.0010.00

2,000,000

11.008.00

1,300,000

12.008.50

1,400,000

Dartford7.756.00

750,000

West Thurrock

7.756.00

750,000

KEY MARKET DEALSOCCUPIER PROPERTY ADDRESS SIZE TENUREChancerygate E C House, Swallowfield Way, Hayes 72,300 sq ft Freehold

Ocado Origin, Park Royal 68,000 sq ft Leasehold

S E J Distribution 5A-E Caxton Trading Estate, Hayes 49,750 sq ft Freehold

Immediate Transportation 2A/2B Ridgeway Trading Estate, Iver 48,362 sq ft Leasehold


OUR GLOBAL BUSINESSColliers International is the leader in global real estate services defined by our spirit of enterprise. Through a culture of service excellence, and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our clients.

16,300PROFESSIONALS

$2.3BIN ANNUAL REVENUE (US DOLLARS)

1.7BSQUARE FEET UNDER MANAGEMENT

502OFFICES

67COUNTRIES

The foundation of our service is the strength and depth of our specialists. Our clients can depend on our ability to draw on years of direct experience in the local market. Our professionals know their specialist markets inside out. Whether you are a local firm or a global organisation, we provide creative solutions for all your real estate needs.

Colliers International offers a comprehensive portfolio of real estate services to occupiers, developers, owners and investors on a local, regional, national and international basis.

Services Agency Sales & Leasing

Landlord Representation

Tenant Representation

Capital Markets & Investment Services

Corporate Solutions

Project Management

Investment Property Management

Valuation & Advisory Services

Sectors Hotels

Industrial & Logistics

Mixed Use

Office

Residential

Retail

In addition to the core sectors and services, in the UK we offer specialist expertise in niche sectors.

SPECIALIST SERVICES

> Building Surveying

> Business Rates

> Corporate Restructuring & Recovery

> Destination Consulting

> Development Consulting

> Fund Management

> Lease Advisory

> Planning

> Property & Project Finance

> Research & Forecasting

> Sustainability Solutions

SPECIALIST SECTORS

> Automotive & Roadside

> Banking

> Healthcare

> Licensed & Leisure

> Metals & Mining

> Public Sector

> Resorts

> Sports & Culture

> Waste, Energy & Minerals

P28 | INDUSTRIAL & LOGISTICS | UK & IRELAND | 2015

Colliers International50 George StreetLondon W1U 7GA+44 20 7935 4499www.colliers.com/uk/industrial 150

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