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speculative industrial developments lead to more flexibility in logistics

14 March 2014

Harworth Estates’ announcement of the first speculative industrial development in Yorkshire since 2007 follows recent research from CBRE showing after years of over-supply of logistics space across Yorkshire, there has recently been a sharp drop in availability of 'oven-ready' sites.

Several of our national logistics clients have addressed the shortage of good quality, affordable warehouse and distribution space (which is replicated nationwide, but particularly across Greater London and Wales) by commissioning their own bespoke warehousing depots. However, with a lead in period of 12-18 months, this does not produce the flexibility required in an industry where large contracts, and the associated need for strategically placed hubs, can be won and lost in a much shorter time period.

As well as developing their own sites, we advise clients on other options such as flexible lease terms, and space-sharing arrangements, to address this need for flexibility. Any speculative development, which will increase the options available to third party logistics operators, as well as retailers, importers and manufacturers, is welcome.

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