Hull & East Riding commercial Property overview
2025 has started brightly for the commercial property market in the Hull and East Riding area reports Ben Medhurst BSc MRICS Managing Director, PPH Commercial, Hull.
With the market showing encouraging signs; the outlook for the forthcoming year is positive.
PPH Commercial are involved in a number of large development projects including the potential development of 200 acres of industrial land in Goole by Metza Tissues, which is currently in for planning permission. If successful, 400 direct jobs will be created on the site which will extend to over 3 million sq ft. PPH have also been instructed to promote the Humber International Enterprise Park (HIEP) on behalf of Associated British Ports. The site comprises over 400 acres of prime industrial space located adjacent to hull docks, 200 acres of which fall within the Humber Freeport Tax Zone.
Development sites along the A63/ M62 corridor continue to attract attention, with Horncastle Developments successfully constructing over 400,000 sq ft for Yara Fertiliser at the Ozone site at Howden and a further 120,000 sq ft of speculative development about to be implemented at the same site.
Siemens Investment in the region cannot be understated with the new rail production facility in Goole now operational and the wind turbine factory at the Siemens Renewable Energy facility at Alexander Dock just having been extended, both having a hugely positive impact on the local economy.
Demand for small to medium sized industrial units within the region remains good with limited supply, take-up of units larger then 50,000 sq ft remains limited.
The office market has seen significant activity in the last 6 months, with a large take-up of prime office space, particularly on the West Hull office parks. The drive by businesses to get employees back into the office has fuelled demand for quality office space to a point where there is very limited availability now and in the market. Inferior secondary space remains difficult to let and freehold opportunities are exceptionally rare.
The investment market has seen significant disruption in the last 12 months with uncertainty around interest rate movements and general lack of sentiment in the market. The recent curt to base rates by the Bank of England will assist this situation but with the general economic outlook for the balance of the year uncertain, it remains to be seen what significant effect this will have on the take-up in the local investment market. Yields on comparable investments are at least 2% higher than where they were at the height of the market back in spring of 2022. Well priced investments will move, but both buyers and sellers are being very discerning on values at the moment.
The prospect for the commercial market within the wider Hull and East Riding area remains fundamentally sound, with a relative lack of speculative industrial and office space coming to the Market, but with relatively strong demand. This region is very good at fending for itself and this is what will be required for the balance of the year.
Article from Commercial Property Monthly
