Storage warehouses in Europe have been given plenty of food for thought – but also ample potential opportunity – by the statistics emanating from the industry as of late suggesting that there is often much more demand than there is space available.
Tightening availability levels in Yorkshire
According to research from Savills, for example, almost one million square feet have been transacted in Yorkshire in the first quarter of this year alone, representing the second strongest Q1 since 2007. Indeed, take-up activity in the county has been said to exceed the 10-year average, but levels of supply are failing to keep pace.
Savills Research has found that while there is presently 2.09 million square feet of space available in 14 units of over 100,000 square feet across the county, only five of them are of Grade A quality.
Even when units of 50,000 square feet are included in the search criteria, of the 21 units in West Yorkshire accounting for 3.1 million square feet of space as of the end of 2015, in the words of Knight Frank’s Tom Lamb, “only four were new grade in prime locations, the others have been available for over two years and less suited to modern industrial occupier demands.”
It all adds up to a situation where “Yorkshire is now suffering from a distinct lack of supply”, as Gent Visick’s Andrew Gent has observed – in stark contrast to 2009 when there were nine million square feet of space from which to choose.
Various issues – but also solutions proposed
The issues surrounding these storage shortages are many, but various solutions have been proposed, despite many of them being rather speculative. A promising one is that many developers are – apparently – set to give the go-ahead for new schemes, although some are still hesitant to do so, due in part to the uncertainty caused by the EU referendum result.
Influxes of cheap rent deals in select areas of the country may also make various second-hand units more attainable, although problems may remain in terms of repair and maintenance.
Make the most of your warehouse space
With available warehouse space predicted to become very limited over the next few years, any spare capacity that your own organisation can offer could provide a fantastic new income stream.
Here at Bis Henderson Space, we can help you to maximise every inch of your warehouse, fill any empty space and assist you with identifying short-term contracts for any overspill, instead of taking on a full lease agreement.
We are dedicated to helping to match those with spare storage space with those on the lookout for such space – whether that may be ambient storage, storage of a specific temperature or even hazardous storage. Whatever your most specialised requirements, please don’t hesitate to contact us.