In terms of land supply, Highbridge Properties has secured Indigo Park, an 82-acre site in North Tyneside close to the A1.
Mr Proudlock added: “This is one of very few major strategic sites in the region to be actively marketed and promoted for development without the constraints many of the other sites suffer from. Highbridge is promoting the site in conjunction with North Tyneside Council which is the majority land owner. This prime site is capable of providing units up to 1.5m sq ft.
“On Team Valley, UK Land Estates is bringing forward the second phase of the Maingate scheme which will include high quality advanced manufacturing units and at Dukesway Central planning consent is in place for three new units of up to 27,000 sq ft. The 140,000 sq ft Acxiom building on Doxford International Technology Park, Sunderland, is also available, though attracting strong interest.”
Overall the regional outlook suggests that while occupier confidence is expected to continue to improve, owner occupier activity is expected to soften given expectations of forthcoming interest rate rises.
Increasing demand is expected from trade park occupiers largely fuelled by increased house building and home improvement activity.
There is little indication that developers are willing to bring forward speculative development in the region, meaning new development is only likely to come forward via design and build agreements.
The supply of available modern buildings will continue to shrink in the absence of new development, and this is expected to put upward pressure on rental levels in the region.
GVA’s latest Industrial Intelligence Report concludes that demand for large logistics warehouses remains positive, although during the first half year take-up of warehouses over 100,000 sq. ft. was relatively modest, at 8.1 million sq. ft. This was 18% below the five year six-monthly average.
Danny Cramman, head of industrial agency at GVA in Newcastle, said: “In the North East the availability of standing industrial stock in the region is diminishing to the point that it could well restrict growth in the region’s economy.
“There has always been a limited supply in the 100,000 sq. ft. plus size range but there has been a good level of take up in the first half of 2014 and it is currently at an all-time low.
“This issue is now being mirrored in the smaller size ranges and companies seeking good quality space over 20,000 sq. ft. in the region’s key industrial locations have far fewer options than they did 12 months ago.
“There is some limited speculative development in the region but these schemes alone are nowhere near the scale needed to address the problem and the region needs to find a way to encourage developers back to the market to give the regions manufacturing and distribution sectors the space to grow and create sustainable jobs.”