Take-up to improve with M&S deal
Take-up of industrial property in the East Midlands fell in the second quarter of 2010 but an increase is expected for the final half of the year, according to property adviser DTZ. Marks & Spencer is “close to signing” on a 900,000 sq ft design and build scheme at the East Midlands Distribution Centre. According to DTZ, improvement is expected in the next few months.
Third-party logistic providers and non-food retail companies dominated take-up in the quarter with White Stuff, AT Logistics Solutions and Buy it Right all taking space in the region over the last three months.
Helen Longstaffe, director of DTZ in Nottingham, said: “As a result of the competitive deals currently on offer from some landlords for existing grade A stock, we have seen a significant amount of take-up in the region over the last six to nine months.
“This has resulted in a comparative lack of good quality units along the M1 corridor. There are a number of units currently under offer in the region which will further exacerbate this situation, leaving design and build as the only viable option for many occupiers.”
Across the UK, total take-up fell 15 per cent although the proportion of grade A space remained high, consisting of 48 per cent of the total.
