News and Blogs

14 September 2021
Speculative industrial developments can help region retain and support ambitious and growing businesses

By Chris Hyam, agency surveyor at Garness Jones

As a specialist in handling industrial commercial property sales and lettings across Hull and the East Riding it has been a somewhat challenging market to operate within over the past 18 months.

Whilst we have seen demand for properties remain high, and as a business we have remained busy in supporting landlord and tenants, there has been a significant reduction in the number of properties becoming available on the market.

Due to concerns over viability we have seen a lack of speculative developments in the market in recent years, and the market has been further impacted by the Covid-19 pandemic.

Whilst the Government has quite rightly done its best to protect businesses struggling to meet rental commitments, it has also stifled market fluency as landlords have had their hands tied over their management of tenants, and their own properties.

As a commercial property agent who has worked in the industrial market for many years, both in the public and private sector, it has been frustrating in recent times to see our local market struggling to meet demand.

There has been a lack of quality new space and facilities to offer growing, ambitious local businesses what they need, and that is not good for the region and its economy.

Garness Jones appointed agents on new speculative industrial developments

We are delighted at Garness Jones to be involved in new speculative industrial developments across our region which will provide general industrial, warehouse, storage or distribution facilities.

These developments are being pursued to meet clear market demand, and are a positive step towards ensuring that, as a region, we are able to accommodate and support businesses looking to grow and advance, and not lose them to other areas.

One of these developments, which is subject to planning approval being granted, is being led by The Derwent Group and will see 40,000sq ft of industrial space developed on land adjacent to Anlaby Retail Park.

Importantly, this development, which will be the first large scale speculative industrial property scheme in East Yorkshire for many years, is being planned to support business of varying sizes, with units proposed ranging from 1,500sq ft to 10,000sq ft, with the potential to add mezzanine floors.

These properties, which it is hoped will be ready for occupation in early 2023, will be suitable for a wide range of uses, in a location where I know there will be high demand and interest.

A bit further afield, we have also been appointed by Priority Space to market their newest development, a £6m Yorkshire coastal industrial Park build in Scarborough.

This development will provide facilities perfect for SMEs looking to grow their business, with units ranging from 1,500sq ft to 6,000 sq ft, available for sale or lease

Like Hull and the East Riding, this development, which is set to be completed by next May, is badly needed in the in Scarborough area, adding to what currently is a limited existing offering.

In a market where demand is high, and stock limited, it has been vital for new speculative builds to start again, as not only does it ensure our businesses have the facilities they require, it also demonstrates confidence in a region where companies have shown their quality and resolve over the past 18 months, continuing to grow and succeed in the most challenging of times.

Given the strong performance of many industrial businesses given all the difficulties faced over the past 18 months, it is fantastic to be part of new investment into this sector regionally, which has been long overdue.

Image:Priority Space is behind a £6m commercial property development which will create 54,058 square feet of speculative industrial or distribution workspace at Scarborough Business Park.