The industrial and logistics property market across Teesside and County Durham has experienced a strong five-year period according to Stockton based Connect Property North East. We have witnessed directly over the past few years a number of occupiers who have taken either pre-let or pre-sold buildings in Stockton on Tees, Darlington and Newton Aycliffe. Direct examples of these include Mammoet who have invested in the region of £7m in a new state of the art 30,000 sq.ft facility at Teesside Industrial Estate, Stockton on Tees.
Elsewhere in the region we have concluded deals at Newton Aycliffe on prelet refurbished buildings. Central Park, a 50,000 sq.ft former warehouse is undergoing a major refurbishment for Kitchen component distributor PWS who will take occupation later this month.
Earlier this year similar deals have been struck with Pharmaceutical company CPI who have moved into a 25,000 sq.ft facility and Schlegel who have expanded into 15,000 sq.ft, both of these buildings have undergone a major overhaul. Opportunities for these refurbished opportunities are now running out, there has been a recent race for shed space from both occupiers and investors looking to add value to the existing older stock in the region.
As a result of this we are now starting to see occupiers seriously consider new design and build and opportunities, particularly in County Durham. Typical requirements are ranging from 20,000 sq.ft – 50,000 sq.ft, which are primarily manufacturing driven.
The Automotive sector continues to have a strong influence on driving the market forward. We expect Newton Aycliffe to continue to thrive, the recent press announcement of Richardson Barberry partnering the 116 acre Forrest Park Aycliffe extension is fantastic news for the region and presents an exciting 10 years ahead. Slightly further south we are also hoping to make an announcement shortly on behalf of a private developer looking to build speculative Industrial units in Darlington, which will be the first in the town since 2007.