Over the past three years Northamptonshire has led the way in the UK’s industrial/warehouse leasing market thanks to its relative affordability compared with locations along the M1 corridor closer to London coupled with its unique location at the centre of the UK’s Distribution Golden Triangle.
Despite a cooling off in the market in recent months due to the macro-economic forces at work, the county continues to attract significant occupier demand albeit at rents slightly below their peak.
Northamptonshire has the largest pipeline of space in the UK with over five million square feet of space under construction, half of which is speculative. Recent lettings of new and yet-to-be-built buildings serve to justify developer confidence in Northamptonshire. These include 3D modular housebuilder TopHat, who signed a 650,000-square-foot pre-let at Mulberry Logistics Park in Corby, Hankook Tyres who have committed to lease a new-build 357,200 square feet by Prologis at Daventry and Danish company DSV who took a 387,500 square foot new-build at Brackmills Gateway in Northampton
Construction activity continues at a pace. Adjacent to M1 Junction 15, Segro Logistics Park Northampton will include a new strategic rail freight interchange for the Midlands. It will eventually comprise five million square feet of logistics development with design and build units available from 50,000 square feet to 1.3m square feet with flexible eaves heights. The scheme is attracting significant occupier interest including department store Selfridges who are in talks to take a 500,000 square foot-plus distribution hub whilst Spanish retail giant Zara is also in talks to lease Prologis’s 628,943 square foot Prologis development in Daventry.
Hadland has recently represented Dachser UK Ltd in acquiring Brackmills 112, a high-quality warehouse unit located at the Bedford Road entrance to the Brackmills Industrial Estate, immediately adjacent to Dachser’s main site.
We are delighted to have been able to secure this deal for our clients on very favourable terms and on schedule. The proximity of the extra space to Dachser’s main site will create cost savings over alternative options that were being considered. The deal completed in August and the landlords, a Jersey-based property company, were represented by Cushman & Wakefield and Hamdon Gate Developments.
Northampton has been a standout performer for rental growth in the industrial property sector over the past five years. Rents have increased by 50% in that time, making Northampton one of the most expensive industrial markets in the Midlands, with headline rents on new-build warehouses hitting £9.00 per square foot in 2022.
Much of Northampton’s industrial stock is owned by pension funds and other institutional landlords. Whilst they have a duty to their stakeholders to obtain best value they also need to be flexible enough in their approach to move with changes in demand and in particular the current affordability challenges now faced by potential occupiers as a consequence of escalation operational costs including business rates rises and wage increases if we are to ensure Northampton maintains its competitive edge in attracting new occupiers.
Hadland are soon to launch the marketing of more industrial space on the Brackmills Industrial Estate. Companies seeking between 25,000 square feet and 80,000 square feet of competitively priced storage and distribution or manufacturing space should get in touch.