Record high for Leicestershire’s industrial property sector in 2016
ACTIVITY in the Leicestershire industrial sector recorded its highest ever take-up in 2016 at 3.2m sq ft, according to a report by one of the region’s top commercial property consultancies.
The Innes England Market Insite report has been monitoring the regional property market for ten years – providing individual focuses on Leicester, Nottingham and Derby looking at offices, retail and storage units to let and buy, and industrial units and sites to rent and buy.
In Leicestershire, the report highlights:
- Industrial take-up at record level of 3.2m sq ft, thanks to Amazon’s 1m sq ft distribution centre in Bardon
- PRS for Music and PPL moved forward with plans to locate a new joint venture outside London in Mercury Place
- Highcross continued to attract new brands to city
- Prime yields across all sectors remained stable
Peter Doleman, director at Innes England, said: “During 2016 Leicester enjoyed success across all its major sectors and we saw strong levels of take-up.
Industrial units to let in Leicester
“The industrial sector achieved a record high of 3.2m sq ft, thanks largely to Amazon’s new distribution centre, which brought with it increased confidence in the market. This letting represents the largest transaction in the region and emphasises the impact of the distribution sector to the local economy.
“Speculative development also helped boost supply last year, though the availability rate is now down to approximately a year’s worth of supply, based on the average annual take-up over the last five years, at just 7%.”
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Shops to let in Leicester
In the city centre Highcross has continued to be the mainstay of Leicester’s retail scene, attracting a number of new brands to the city in 2016.
Peter said: “The high street has had its casualties in recent months, notably BHS and Fenwick most recently, but Leicester’s retail sector has continued to perform well. Out of town has performed really well, with prime rents increasing year on year and a substantial development pipeline.”
See our current up to date listing of retail units and shops to let in Leicester.
Offices to let in Leicester
Leicester’s office market has seen availability fall significantly in recent years and is now down to 11.9%, compared with 25.4% at the end of 2014. The office sector has been dominated by smaller transactions, and 87% of the available space in the city is second-hand.
Peter added: “Perhaps the most significant transaction in the office market was PRS for Music and PPL’s decision to open an office in Mercury Place for its new joint venture, citing the city’s talent pool and strong transport links as being attractive when looking at potential locations across the region. Overall, the office sector has performed well, with take-up increasing by 5% when compared with 2015.”
See our current up to date listing of offices to let in Leicester
Following a record high of investment levels in 2014, activity in Leicester’s investment market dropped significantly in 2015. 2016 saw activity return to a healthier £323m – boosted by the £126m purchase of Amazon’s new facility by South Korean investors.
“Leicestershire’s investment market enjoyed a strong performance in 2016, buoyed by the significant Amazon deal. Confidence remained high with a particular focus in the distribution market, where Leicestershire is attracting premium occupiers and yields,” added Peter.
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