Modest take-up of space in Q4, says report
Industrial take up in the East Midlands was less modest in the final quarter of 2010 than the previous three months. That’s according to DTZ Research’s latest UK Property Times industrial market report.
The property agent’s report said a few deals involving more than 100,000 sq ft were transacted, but did not live up to the hype of the third quarter of the year, during which Marks & Spencer agreed a 900,000 sq ft pre-let.
The annual total was 6.2 million sq ft, with retailers and third party logistics operators making up the bulk of the transactions.
There was a small upward movement in the level of available space, which is expected to increase further as Nissan and K&N close their operations and release space back to the market.
Phil Glenn, head of DTZ’s Nottingham office, said: “The return of more stability to the market and potential increasing demand provide better news for the prime part of the sector and could bring about modest growth in demand for well located good secondary stock if demand outstrips current supply.
He added: “Capital values are not likely to increase unless we see real rental growth. The investment market has become increasingly polarised with the gap in pricing between prime and secondary growing larger due to the downside risks impacting on the latter. Poor quality secondary property is very difficult to fund in the current market and there is little appetite from investors.”
