SHORTAGE OF INDUSTRIAL SPACE SPELLS TROUBLE

Cheffins has let or sold nearly 200,000 sq ft of industrial space since the start of this year in a number of major transactions, showing the strength of the economy in the Cambridge region.

But this success means trouble ahead for other businesses seeking space as it signals a lack of supply of quality industrial and warehouse space.

Philip Woolner says: “Very little new industrial and warehouse accommodation has been built over the past three years because of the recession, yet there has been a surge this year from local firms wishing to expand and new ones coming into the M11 and A14 corridor areas – from Haverhill upwards to Cambridge and out to Newmarket. Firms range from an international electronics firm wanting to stay in the Cambridge orbit who are taking 38,000 sq ft at Papworth to a cake-making firm relocating from Cambridge to Maple Park Haverhill who are taking 20,000 sq ft. Earlier in the year 27,000 sq ft of modern production space was let to printers MPG at Homefield Road, whilst a 22,000 sq ft unit in the same estate was sold to Bernhard Group.

“A striking example of this has been the recent take up of 20 new units at Buckingway Business Park, Swavesey, with the latest 7100 sq ft sale of Unit 2 to PP Global, a packaging and design firm.”

Bidwells is joint agent on Buckingway Business Park.

In Cambridge, Unit 3, Trinity Hall Farm Industrial Estate, Nuffield Road, totalling 18,249 sq ft, has been sold to COEL, the office interior design and installation company. One of the directors, Dan Brown, says: “We have set up a new company, CMS, to occupy part of the building for our expanding commercial movement management and storage business. We are also moving our main business from Chesterton earlier next year.”

The joint agent was Dodson Jones.

Further afield, in Haverhill, a major 54,588 sq ft warehouse building on 2.44 acres at Boundary Road, has been leased, with an option to buy, to Mazerattan, importers of furniture from the Far East, who are relocating from Newmarket . The landlords are the Ancient Order of Foresters Society.

Philip Woolner says: “The only new industrial development currently under way in and around Cambridge is at Glenmore Business Park on the A10 at Waterbeach, where Glenmore Developments is building an initial phase of 16 units from 1,000 to 9,500 sq ft. We are experiencing strong interest in the scheme with a number of units under offer.

“Short supply poses problems for companies needing new quality premises. This will increase rents and make pre-let and pre-sale agreements essential if those companies want to secure new space.”

He adds: ”We are now entering the usual post-recession period where demand has picked up but new developments have been on hold for two years. For firms looking for space in this area, the first essential will be to appoint a professional adviser to hunt out any available properties, because simply scanning the commercial property advertisements will not be enough.”

FOR FURTHER INFORMATION PLEASE CONTACT PHILIP WOOLNER AT CHEFFINS ON 01223 213666 OR EMAIL: philip.woolner@cheffins.co.uk.