DEMAND OUTSTRIPS SUPPLY AS HULL’S INDUSTRIAL SECTOR ENJOYS 25-YEAR HIGH
With demand continuing to outstrip supply in both Hull and the East Riding, our team of experienced Chartered Surveyors here at PPH Commercial have been surprised by the high levels of interest since the start of 2018.
As a result, a number of transactions have been carried out across the industrial market – ranging from small factory units right up to large bespoke design and build facilities.
The biggest of these was an 88,000sqft factory and office facility in Howden, where we acted on behalf of Horncastle Group to bring Alumasc Limited, a building products specialist, to the six-acre site. Horncastle are also now building a 36,000 sq ft unit for DHL at Ozone Business Park, Howden. We also recently disposed of 88 acres of land adjacent to the Pocklington Industrial Estate on behalf of a long-term client.
Having negotiated several significant deals during the first few months of this year, PPH director Ben Medhurst believes the industrial market will continue to be strong for the rest of 2018.
Mr Medhurst said: “The outlook for the industrial market in general is very positive – with demand outstripping supply and stock levels running at a near 25-year low in this region.
“These low stock levels are putting positive pressure on rents and capital values, which is good news for investors and landlords.
“On another positive note, occupation levels are also excellent at a number of industrial estate that we represent. The Stoneferry Park, in east Hull, is a perfect example of this – having recently become fully occupied for the first time in a number of years following the letting of an 8,000 sq ft unit to of biofuel specialists Andritz.
“The occupation levels we’re experiencing at smaller factory estates are phenomenal and show no signs of abating. This is a significant vote of confidence in this area, with the local economy continuing to flourish.”
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