Take-up for logistics units over 100,000 sq ft reached 4.5 million sq ft in Yorkshire in the first half of 2020, a 19% increase YoY and beating the long term annual average of 3.4 million sq ft, according the latest Savills Big Shed Briefing. Only 4.7% of take-up in H1 2020 has been for short-term lettings highlighting the continued strength of the market despite COVID-19.
Tom Asher, director in the industrial and logistics team at Savills Leeds, says: “The market has performed exceptionally well continuing the trend of record take-up over the past two years. We have already surpassed the 2019 full year figure and are on track for the best year on record, despite current uncertainties within the market.”
Of the space transacted, 54% was build-to-suit and 37% second hand. The largest deal on an existing building in H1 2020 was The Range committing to 547,000 sq ft in Normanton.
Asher, adds: “Given the current supply dynamics it is difficult to see the preference towards build-to-suit space changing until more units are delivered speculatively and second hand supply is absorbed.”
There are currently five units under construction totalling 1.72 million sq ft including Super B at Junction 26 of the M62 near Bradford where Savills is marketing 230,000 sq ft, which will be available Summer 2021.