lancashire development update: andrew pexton, gva

Presented by:Andrew Pexton

Lancashire

Industrial Market Overview

Overview

− Diverse County

− Employment – above national and regional % in employment

– above national and regional % in employment

− Rail – West Coast mainline

− Road – extensive motorway network

Lancashire Industrial Market2

Main Employment Sectors

− Aerospace

− Packaging

− Paper

− Food

− Fashion

− Energy


Main locations

− Preston – Main CNT/HCA locations are built-out.

Emerging locations are Preston East/Red Scar

− Central Lancs – Buckshaw Village/Revolution

Lancashire Business Park/Farrington

−Skelmersdale – Stanley

Gillibrands

Pimbo


Main Locations

− Blackburn Shadsworth

Roman Road

Walker Park

Whitebirk/Frontier

− Burnley Network 65/Rossendale Road

Heasandford

Burnley Bridge

− Fylde Squires Gate

Whitehills

Poulton Industrial Estate


Supply

− Approx. 5.7m sq ft of built stock available

− Unit sizes range from 200 sq ft to 322,000 sq ft


To Let

For Sale

1.9m

3.8m

Supply

− 62% of stock is less than 10,000 sq ft ; 85% of stock is less than 25,000 sq ft


1.9m

3.8m

Over 200k

150 - 200k

100 - 150k

50 - 100k

25 - 50k

10 - 25k

5 - 10k

2.5 - 5k

1 - 2.5k

Market Activity

− Transactions over 100,000 sq ft

− Skelmersdale – Accrol Papers 368,000 sq ft

− Blackburn – Mardix Holdings 110,000 sq ft

− Burnley Bridge – Fagan and Whalley 100,000 sq ft

− Lower Darwen – Vampire Vapes 115,000 sq ft


Speculative Build

Big Shed Development

− Frontier Park, Blackburn – 185,500 sq ft

− Sigma 110 Blackburn – 110,000 sq ft

Smaller Unit Development

− Vision Park, Burnley

− The Hub, Darwen

− Eaton Avenue, Chorley

− Various Blackpool


Rents and Capital Values

− Land values - £200,000 - £300,000 per acre

− Capital values – New build £85 - £120 psf

Modern existing £55 -£90 psf

− Rental Values – New build £5.50 - £7.50 psf

Modern existing £4.50 - £6.50 psf

− Lease Terms – Generally 5 to 10 years

− Rent Free Period – Rent free periods reduced to 3 to 9 months


New Development Sites

− Preston – Preston East/Red Scar

− Central Lancs – Cuerden

− West Lancs – G Park and Simonswood

− Blackburn – Frontier Park

− Burnley – Burnley Bridge

Enterprise Zones

− Lancashire Advanced Manufacturing and Engineering Enterprise Zone

− Blackpool Airport Enterprise Zone


Summary

− Lancashire has a strong and diverse employment base

−Existing market has benefitted from ex CNT stock in certain areas

−New build development is only viable by establishing higher pricing

−Occupiers need to be able accept/afford the higher pricing

−Regional motorway network has enabled locations to thrive

−Market focus is for a larger number of sub 25,000 sq ft reqts

−There are a number of deliverable high quality regional / sub regional sites

−There is still a need for more stock to increase the liquidity in the market

−The market continues to be driven from a strong manufacturing base


GVA

GVA is the trading name of GVA Grimley Limited. ©2018 GVA

If there is anything you

would like to discuss within

this presentation please get

in touch.

Andrew Pexton

0161 956 4207

[email protected]

Norfolk House , Norfolk Street, Manchester, M2 1DW

Presented by

GVA

GVA is the trading name of GVA Grimley Limited. ©2018 GVA

Thank you

Andrew Pexton

Director

Norfolk House, Norfolk Street, Manchester , M2 1DW