Industrial speculative developments decline

Oct 8 2008 by Tony McDonough, Liverpool Daily Post

SPECULATIVE development of industrial floorspace in the North West is less than half that of six months ago, a new report reveals.

King Sturge’s UK Industrial & Distribution Floorspace Today survey says the level of speculative development in the region now stands at just over 80,000 sq m across 10 schemes.

The report also shows the overall level of available industrial and distribution floorspace across the UK has increased for the sixth consecutive survey, although this rise is slowing.

The total amount of available industrial floorspace across the UK stood at 21.527m sq m at June, 2008, a 0.5% increase on six months earlier.

Over the same period, floorspace available in units of 10,000 sq m and over, decreased marginally by 0.8% to 6.182m sq m, while the increase in the availability of new floorspace continued, rising by 6.0% to 2.965m sq m.

In the North West, the study reports:

Available floorspace in the region increased by 4.3% (101,000 sq m) to 2.444m sq m at June 2008.

Floorspace available in large buildings over 10,000 sq m increased by 2.6% (21,000 sq m) to 832,000 sq m in the six months to June 2008. This category provided 34% of the region’s available stock.

Available new floorspace increased by 14.1% (51,000 sq m) to 412,000 sq m. New floorspace accounted for 16.9% of the total available stock at June 2008.

Across the UK, the amount of floorspace under construction on a speculative basis decreased “significantly” since the last survey. Speculative development under construction decreased by 43% from January, 2008, to 711,651m sq m across 73 schemes in July. Approximately 50% of this development was confined to the East and West Midlands.

Significant North West properties mentioned in the report include new-build space at Knowsley Industrial Park and refurbished accommodation at Pimbo Industrial Estate, in Skelmersdale.

tonymcdonough