Marshall CDP is progressing proposals for 200,000 sq ft of industrial space across part of the 25-acre site it acquired from Ion Developments in 2021. 

The sheds will range from 20,000 sq ft to 73,000 sq ft. 

In total, Earlsfield Park has planning permission for up to 320,000 sq ft of employment space and there are an additional 10 acres under Marshall’s ownership that could accommodate the remaining 120,000 sq ft in a second phase. 

According to Marshall’s website, construction of the phase one units is due to begin next Easter. To learn more about the proposals, search for reference number 23/01429/REM on Knowsley Council’s planning portal.

Ion secured outline approval with Bellway for the 40-acre Earlsfield Park scheme in 2018. Since then, the housebuilder has delivered 154 homes on the western portion of the site, while Ion has created a motorway service station for Eurogarages off Junction 2 of the M57 to the east. 

Earlsfield Park features in Liverpool City Region’s investment zone plans. Under proposals to create a hub for life sciences across LCR’s five boroughs, the Knowsley scheme could benefit from a £4m funding boost. 

• Find out which other schemes are in line to benefit from investment zone cash. 

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Trebor Developments and Hillwood Investment Properties bought the 345,000 sq ft Crewe industrial complex in an off-market deal. The purchase price was not disclosed. 

The site comprises 13 acres and benefits from having already secured detailed planning consent for a single 335,000 sq ft logistics unit, which will start on site in Q1 2024. 

Demolition of the former Bargain Booze facility will begin this autumn. 

Greg Dalton, development director for Trebor, said: “We have long held an interest in acquiring this site for redevelopment and are delighted to have reached an agreement with AEW that satisfies both parties aspirations. 

“The deal is an example of our proactive approach to acquiring new opportunities, even against the challenging market conditions of the past 12 months, and we look forward to investing in new logistics space for the area and greatly improving on what is available on site today.” 

Knight Frank acted on behalf of Trebor and Hillwood on the acquisition and will be retained as joint letting agents alongside Avison Young.  

TT&G Partners acted on behalf of AEW UK Core Plus Property Fund. 

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AEL Projects would deliver the 58,000 sq ft manufacturing facility on behalf of Wyder Timber, which is involved in the production of roof trusses. The company requires an efficient workplace where materials can be delivered, processed, produced, and redistributed..

Designed by RPS Design Group, the scheme would see Wyder relocate from its existing Preston warehouse, a 10-minute drive away off Cummeragh Lane, in order to meet the demands of its operations.

The single-storey facility would provide a small-scale mezzanine level to provide staff with a 2,200 sq ft open-plan office and 344 sq ft conference room.

There would be 50 car parking spaces provided, including three disabled bays, as well as two motorcycle spaces and 12 cycle stands.

Most recently used for open-air storage, the three-acre site is accessed off Roman Road.

Cassidy + Ashton is the scheme’s planning consultant. Also on the project team are Bowland Tree Consultancy, PSA Design, Envirotech, and Reford Consulting Engineers.

Want to learn more about the plans? Search for application number 06/2023/0871 on Preston City Council’s planning portal.

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Oldham Council approved the developer’s plans to build three industrial blocks at its planning committee meeting on Wednesday. This decision was made in line with officer recommendations.

Designed by Elder Lester Architects, the scheme will provide a total of 40,000 sq ft of warehouse space across the three blocks within Greengate Industrial Estate. Each block will be made up of eight hybrid units.

Plans will also see the creation of two meter rooms and a substation.

Visitors to the site will have access to 51 car parking bays, as well as 20 cycle spaces.

Mandale Investments are part of the Mandale Group, which also incorporates Mandale Homes. The group’s housing arm lodged plans in June to transform Liverpool’s Graeme House into 143 apartments.

ELG Planning is the planning consultant for the industrial scheme. Also on the project team are SCP, Sutcliffe, Shearstone Mechanical, Amenity Tree Care, and AEC.

To learn more about the plans, search for application number FUL/350748/23 on Oldham Council’s planning portal.

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FIREM’s Peblig Industrial Estate straddles the River Seiont near Caernarfon’s town centre. The 13-acre site is filled with an assortment of “poor quality” warehouses that are not fit for purpose or able to be refurbished in an economical fashion, according to a planning statement by Plan Red.

FIREM’s solution is to demolish those units and replace them with five blocks of light industrial, manufacturing, and logistics space. These DMWR Architects-designed blocks would have a total of 41 units varying in size from 968 sq ft to 10,344 sq ft. They would all add up to 126,200 sq ft of employment floor space.

Not all of the £10m project will be new-build, however. FIREM’s project also includes 68,250 sq ft of refurbished industrial space for those buildings that can be modernised.

If FIREM can secure planning permission from Gwynedd County Council, the developer would also build a new internal circulation road and an improved bridge over the River Seiont to link one edge of the estate with the other.

Given the project’s proximity to the river, FIREM’s proposals include a flood compensation pond and a flood meadow to help keep the water at bay.

Access to Peblig is from Llanbeblig Road. Those driving to work on the revamped site would have access to 147 car parking spaces, including 15 that are designated for those with disabilities. There would also be 40 cycle spaces.

FIREM estimates that the Peblig overhaul would create 150 jobs in the long term.

The developer also stated that work on the project would complete 18 months after starting.

“Our redevelopment of Peblig Industrial Estate is a continuation of our ambition to create modern and much-improved industrial space that befits growing and successful businesses in North Wales,” said Tim Knowles, founder and managing director of FIREM.

The team for the Peblig project includes Wardell Armstrong, Prime Transport, United Environmental Services, and LDE.

You can learn more about the scheme by searching C22/0696/14/LL on Gwynedd County Council’s planning portal.

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EPISO 5, a fund managed by Tristan Capital Partners, has acquired the Birkenhead plot from Peel L&P. Now, Tristan Capital will work alongside Tungsten Properties to deliver Ark Royal, which was granted planning permission from Wirral Council in June.

Tungsten had been developing the project with Peel L&P. Now, the company will be Tristan Capital’s operating partner and development manager for Ark Royal.

Designed by HTC Architects, the future shed will contain 30,000 sq ft of offices and 465,400 sq ft of industrial space. The project also includes 131 spaces for HGVs, 421 for cars, 18 for motorcycles, and 30 for cycles.

Tristan Capital and Tungsten have announced their goal for the building to achieve a BREEAM rating of Excellent and for it to be net zero carbon in construction.

Ark Royal will sit off Campbelltown Road on land that formerly belonged to Cammell Laird shipyard. The industrial project’s agents are Colliers and Moriarty & Company.

Tristan Capital’s acquisition of Ark Royal is one of two major deals completed by the EPISO 5 fund. The other was to acquire a 360,000 sq ft industrial asset in Colchester.

Nicho Jenkins, managing director at Tristan Capital, explained the company’s rationale for the EPISO 5 purchases.

“The land price coupled with the underlying occupational dynamics and the opportunity to work with a best-in-class development partner makes developing these schemes an attractive proposition for the fund,” Jenkins said.

“We continue to see strong occupier demand for the highest quality logistics assets, with exceptional ESG credentials, across our portfolio,” he continued. “It follows that these projects reflect a continuation of our strategy to create value for our investors by developing such assets”.

Tungsten’s managing director, Jeff Penman, added: “Tristan Capital’s investment into building these two important industrial schemes show that we are responding to significant demand for such space in their respective ports to enable increased global commerce.

“Ark Royal will be one of the largest new build warehouses in the North West of England and address the dearth of 500,000 sq ft units in the region.”

Commercial advice was given to EPISO 5 by TT&G and Atlas Real Estate when it came to the deal. CMA was the legal adviser for EPISO 5, while Tungsten was advised by Forsters.

Want to learn more about Ark Royal? Search APP/22/00334 on Wirral Council’s planning portal.

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Orbit Developments has announced that work has commenced on phase two of Academy Business Park, which will be split across eight units.

Phase one completed last year and delivered 35,000 sq ft of space, set across four units.

The announcement follows global biotech company Associates of Cape Cod’s acquisition of 22,100 sq ft at the park, completing the lettings for the first phase of the development.

The company joins the existing tenants at Academy, including Screwfix, Liverprint, and Rexel, and will head up its base of UK operations there.

Dennis Dwyer, Divisional Director at Orbit Developments said “With an ideal location in Knowsley, which has a growing business base, it’s no wonder the park has attracted a huge multinational corporation like Associates of Cape Cod and we’re delighted that they have decided to join us here.

“The business park is continuing to grow, and we are creating a mix of modern business units along with other staff amenities on site.”

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Cheshire West and Chester Council unanimously approved both schemes at its planning committee meeting on Thursday, in line with officer recommendations.

Ash Road

Application number: 22/03693/FUL

Encirc, which manufactures and distributes glass bottles, will build a 657,000 sq ft facility on the 50-acre plot previously occupied by four cooling towers.

Designed by AEW Architects, the scheme will deliver a 364,400 sq ft automated warehouse and more than 15,000 sq ft of office space, as well as a 150,000 sq ft dispatch area.

Plans will also see the creation of a monorail providing an automated link for transporting goods from Encirc’s existing warehouse to the new facility.

Encirc opened its Elton facility in 2005. Since then, its workforce has more than doubled from 400 to 900.

The new production line is planned as a joint initiative with Diageo, the alcoholic drinks maker. The line is due to be ultra-low carbon, using green electricity and hydrogen.

The facility is expected to start production in 2027, with a target of producing 200m bottles a year by 2030 for brands including Smirnoff, Captain Morgan, Gordon’s, and Tanqueray.

Encirc submitted the plans for the warehouse in February.

Lichfields is the planning consultant for the scheme. The project team also includes IDOM, I-Transport, The Environment Partnership, and WSP.

The scheme will be set across four fields. Credit: via planning documents

Bretton Hall Farm

Application number: 22/02042/FUL

New Energy Wales will deliver and operate the solar farm on a 60-acre plot off Chester Road.

The scheme, set across four agricultural fields, will have a capacity of 14 megawatts – enough to power 4,200 average UK homes.

Plans form part of a proposed 30-megawatt solar farm across a wider 124-acre site. The wider development would provide between 28,000 MWh and 30,000 MWh into the local grid annually, generating renewable energy for the equivalent of around 8,400 average UK homes.

The larger site sits on the boundary between Wales and England, with the northern area lying within the administrative boundary of Flintshire County Council. Therefore, a separate application was submitted to Flintshire County Council last month for the remaining 64-acre area and is awaiting consultation.

The scheme is one of 11 that has received a share of £75,000 from Ynni Cymru, a renewable energy company launched by the Welsh Government in August to help Wales reach its goal to have all its electricity provided by renewable sources by 2035.

The project team includes Corin Hughes, Mabbet & Associates, Land Research Associates, and Systra.

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The industrial building forms the second phase of Tritax Symmetry’s 1m sq ft redevelopment of Cronton Colliery near Huyton, located east of Junction 6 of the M62. 

Matt Claxton, planning director at Tritax Symmetry, said: “The reserved matters application further demonstrates Tritax’s commitment to Knowsley, delivering much-needed warehouse facilities within a key strategic employment site, further supporting the wider Halesnead Garden Village proposals.

“Subject to a positive outcome in autumn 2023, the building works will commence with expected completion of the unit ready for occupation in autumn 2024.”

An earlier planning application for the second phase of Symmetry Park Merseyside was submitted in April 2022 and sought consent for 350,000 sq ft across two units of 230,000 sq ft and 120,000 sq ft.  

The most recent application supersedes those plans “in response to market requirements,” Claxton confirmed.

Designed by UMC Architects, phase two of the 120-acre industrial scheme would provide 254,000 sq ft of warehouse space and 14,000 sq ft of ancillary offices. 

In addition, the proposals feature 25 loading docks and 244 car parking spaces. To learn more, search for planning reference 23/01949/REM on Knowsley Council’s planning portal. 

Elsewhere at Symmetry Park Merseyside, GMI Construction is close to completing phase one, a 161,000 sq ft distribution facility for courier Yodel, earlier this year. 

The delivery company has signed a 15-year lease on the first speculative unit at Tritax’s scheme. 

In total, the Huyton development, which is part of the wider Halsnead Garden Village, will see 1m sq ft of industrial space developed.

The project team includes UMC Architects, and Gerald Eve as the planning consultant, alongside consultancies The Environmental Partnership, Tyler Grange, and Tier Consulting.  

The outline element of the application also includes the creation of a country park. The full details of the country park are being considered under a separate planning application submitted by the Land Restoration Trust.  

The park would include eight acres of wetland habitat, 11 acres of woodland and 5km of paths derived from the coal seams below the site. 

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That masterplan calls for 538,200 sq ft of industrial space by Junction 9 of the M65. The two recently approved warehouses together make up about 37% of that space and are the first building elements to secure planning permission since the Issa brothers’ development company purchased Burnley Bridge South in November last year.

Both of Monte Blackburn’s warehouses were granted planning permission by Burnley Council under delegated powers in July.

The smaller of the two comprises 39,100 sq ft spread across a ground floor and mezzanine. There will also be 48 car parking spaces.

The larger scheme offers 165,200 sq ft of industrial and office space, with a ground floor, first floor, and mezzanine.  There would be 259 car parking spaces provided.

Both projects are set to achieve a BREEAM rating of Very Good, according to an analysis by consultant Sustainably Built.

They were designed by Campbell Driver Partnership Architects, with planning consultant Freeths securing permission from the council. DEP Landscape Architecture and Dragonfly Consulting round out the project team.

You can learn more about the larger warehouse by searching REM/2022/0683 on Burnley Council’s planning portal. The smaller warehouse can be found by using reference REM/2022/0707.

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Companies House shows that NSD Huyton – the Network Space vehicle that was delivering the scheme – is now controlled by TJ Morris founder Thomas Morris and the firm’s head of property David Little. 

Both men are also listed as directors of Davos Property Developments, which took out a loan from parent company TJ Morris to buy the former distillery, according to Companies House. 

While Land Registry shows that Network Space bought the site, formerly home to Halewood Artisanal Spirits for £16.1m in 2021, it is unclear how much the developer sold the plot for. 

TJ Morris and Network Space were contacted for comment. 

Having acquired the 28-acre site in March 2021, Network Space submitted plans for the first phase of the revamp of the former Sovereign Distillery at Huyton Business Park last year. 

Knowsley Council approved these plans, comprising 194,000 sq ft, earlier this year. 

The Huyton site is located adjacent to the M62/M57 intersection and the scheme was designed by Aew Architects, with Walker Sime also on the professional team. 

Network Space received a £15.5m loan from the Liverpool City Region Combined Authority to buy the site. This loan has since been repaid, according to Companies House. 

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Designed by Keystone Design Associates, the scheme will deliver a 22,000 sq ft warehouse to provide five individual units.

There will be one 3,000 sq ft, one 4,500 sq ft, and one 4,900 sq ft unit, as well as two measuring 4,700 sq ft.

The two-acre site will be accessed off Hallam Way and is currently vacant.

Visitors will have access to 66 car parking spaces, including six disabled and five electric vehicle charging bays.

Fylde Council’s decision to approve the project was made in line with officer recommendations.

Sub Surface is the environmental consultant for the scheme.

To find out more about the plans, search for application number 23/0024 on Fylde Council’s planning portal.

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Network Space wants to build the warehouse on the 6.7-acre former Northern Airfield site off Leeward Drive. 

The AEW Architects-designed scheme would deliver a 117,000 sq ft industrial unit with 11,000 sq ft of first-floor office space. 

Visitors would be provided with 153 parking spaces, including 16 electric vehicle, nine accessible, eight motorbike, and 10 cycle bays. 

The site was formerly home to the first Liverpool Speke Airport. The airport was closed in 1986 and the business park site is now vacant. 

Plans for the project were submitted in November last year. 

Spawforths is the planning consultant for the scheme. Also on the project team is transport consultant Pell Frischmann, engineering consultant Hannan Associates, noise consultant Red Acoustics, and environmental consultant RPS. 

To find out more about the plans, search for application number 22F/3047 on Liverpool City Council’s planning portal. 

Network Space’s current projects include the redevelopment of the 28-acre former Sovereign Distillery site in Huyton and a similar scheme on the former Cartwright site on Atlantic Street in Altrincham. 

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Rula Developments, which acquired the site from Build&Thrive – a partnership between Cheshire West and Chester Council and PSP – has submitted a planning application for a 225,000 sq ft scheme featuring 213,000 sq ft of industrial space and 12,000 sq ft of offices. 

The shed would be located off Junction 18 of the M6 and developed speculatively in response to the region’s shortage of large industrial accommodation. 

The development has the capacity for 275 full-time jobs and Rula is aiming for EPC A and BREEAM excellent ratings. 

Subject to planning consent, construction could begin next March and complete the following September. 

Anthony Clitheroe, development director at Rula Developments, said: “With infrastructure already in place, we can offer fully serviced plots for immediate development.  

“Opportunities are available on freehold or leasehold terms, for new build units, ranging from 1,500 sq ft up to 225,000 sq ft supporting industrial manufacturing, distribution and roadside amenity uses.” 

Corstorphine & Wright is the architect and ID Planning is advising Rula on planning matters.

The scheme is the latest Rula has brought forward at Winsford. In May, the developer submitted proposals to speculatively deliver two smaller industrial units offering 74,508 sq ft and 27,728 sq ft of accommodation. 

Rula has previously delivered a 168,000 sq ft factory for Tiger Trailers at Winsford Gateway and more recently completed a 1.6-acre roadside petrol filling station with retail amenity for The Kay Group as well as a new 60,000 sq ft storage facility.  

PSP and Cheshire West & Chester Council have been working in partnership on the redevelopment of Winsford industrial estate since 2017.   

In 2020, the JV appointed Rula as development partner for the next phase of the scheme. 

Legat Owen and CBRE are the agents for Winsford Gateway.

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Designed by Martin Spencer Architecture, the scheme would create a 60,000 sq ft warehouse.

Proposals feature 53,100 sq ft of industrial space and 6,600 sq ft of office space across three floors.

Visitors would be provided with 58 car parking spaces, including 15 electric vehicle charging bays and six accessible spaces. There would also be eight cycle and four motorcycle bays, as well as 24 trailer spaces.

Currently undeveloped land, the plot sits next to Gorsey Point, a 708,000 sq ft industrial site acquired by Clarion Partners Europe from Mirastar earlier this month.

In 2021, Avjon bought five industrial units totalling 114,000 sq ft at Parkgate Industrial Estate in Knutsford from plastics distributor Albis.

Roman Summer Associates is the planning consultant for the investor’s Widnes scheme. The project team also includes transport consultant Focus Transport Planning, environmental consultant Amenity Tree, and engineering consultant Patrick Parsons.

To find out more about the plans, search for application number 23/00272/FUL on Halton Council’s planning portal.

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The firm, which recycles plastic and ships it to the Far East, will invest £7m at its 43,000 sq ft new Winsford facility. The complex could create 30 jobs. 

Nolan Redshaw advised 99P.  

Paul Nolan, director at Nolan Redshaw, who advised 99P, said: “99P has committed to a new state-of-the-art low density polyethylene film recycling plant in Winsford to enable large quantities to be recycled in the UK and reused.”  

JLL and Legat Owen acted for landlord Pitalia and project manager Harlex. 

Pitalia purchased the 250,000 sq ft at Winsford Industrial Estate from Henkel UK Operations in late 2021. 

Of that, 80,000 sq ft was leased back to Henkel on a five-year deal and 43,000 sq ft will now be occupied by 99P. 

Last year, Pitalia acquired another 71,000 sq ft at the estate from Renray on a £3.85m sale and leaseback agreement. 

Matt Pochin, director at Legat Owen, added: “Winsford Industrial Estate is attracting major manufacturers and distribution businesses that see Winsford as an excellent alternative to more costly locations.  

“The low-density site and sizeable yard has attracted occupiers, like 99P, who are struggling to find good external areas. We have also had a high level of interest in the last remaining unit, which is reflecting the continued pressure on stock levels for quality industrial space.” 

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The AEW Architects-designed scheme would deliver the warehouse on the former Northern Airfield site off Leeward Drive.

Plans for the building feature a 117,000 sq ft industrial unit with 11,000 sq ft of first-floor office space.

Visitors would be provided with 153 parking spaces, including 16 electric vehicle, nine accessible, eight motorbike, and 10 cycle bays.

The site was formerly home to the first Liverpool Speke Airport. The airport was closed in 1986 and the business park site is now vacant.

Plans for the project were submitted in November last year.

Spawforths is the planning consultant for the scheme. Also on the project team is transport consultant Pell Frischmann, engineering consultant Hannan Associates, noise consultant Red Acoustics, and environmental consultant RPS.

To find out more about the plans, search for application number 22F/3047 on Liverpool City Council’s planning portal.

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One year on from the establishment of the mayoral development zone, the creation of an advanced materials “mega cluster” is due to take another step forward this week.

The post GMCA to approve business case for 17m sq ft Atom Valley  appeared first on Place North West.

Plans mark the second phase of Redsun Projects’ Vista development in Hawarden. Phase one reached practical completion last month with the creation of four industrial units totalling 65,000 sq ft.

Designed by architect Fletcher Rae, phase two will deliver a total of 60,000 sq ft of warehouse space. Individual units will measure 30,000 sq ft, 10,200 sq ft, and 19,800 sq ft.

The ground floor of each unit will feature around 10% of office space.

Visitors will also be provided with a total of 99 car parking spaces, including 10 electric vehicle and 11 disabled bays, across the three units.

The project was approved in line with officer recommendations.

Cadnant Planning is the planning consultant for the scheme. Also on the project team is landscape architect TPM Landscape, transport consultant Mode Transport Planning, and engineering consultant Crookes Walker Consulting.

To find out more about the plans, search for application number FUL/000345/23 on Flintshire County Council’s planning portal.

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Meanwhile, the big box occupation market slowed for the first time in four years, with only 1.5m sq ft taken up – down 64% from the year before.

Here’s a closer look at each of the industrial markets. You can download the report for yourself on B8RE’s website.

Investment

While £979m of investments is a grand figure, B8RE warned that it was skewed by a few big deals – namely Blackstone’s £480m acquisition of Harbert Management Corporation’s portfolio at Trafford Park and Heywood Distribution Park.

So while there was £979m reported for the first half of 2023, it was worth noting that was only spread across 29 deals. For comparison, the same period in 2022 had £505m of transactions across 39 deals.

When looking at the B8RE data, it is clear that bigger ticket items were in demand with multi-let estates accounting for half of the total industrial sales value for the period. Smaller warehouses represented 32% of that value figure.

“Investors’ demand for industrial property has remained robust compared to other property sectors but the supply of properties remains restricted,” said John Burrows, investment surveyor at B8RE.

“Many owners are unwilling to sell in the current market and there remains a strong impasse between vendors’ and buyers’ price expectations,” he continued.

“Meanwhile purchasers are being more selective as stubborn inflation and uncertainty about when interest rates will peak has made them more cautious,” Burrows said.

“It is also harder for them to deploy capital as higher finance costs make it ever more difficult to achieve the desired returns at current prices.”

Occupation

B8RE reported 1.5m sq ft taken up in the big box sector over the course of nine transactions. This is down 64% from the same period last year and is the first slowdown in four years, according to B8RE.

The agency argued that this number was due to change, with several largescale deals in the works.

A similar report from Savills was more positive. Savills’ Big Shed Briefing put the North West take-up of industrial and logistics space at 2.15m sq ft.

B8RE noted that there were only three new-build, big box, speculative units immediately available in the North West, equating to 703,000 sq ft. This pressure on the market is set to get some relief soon, as there is another 1.9m sq ft under construction.

Because of these low supply levels, B8RE noted that rents can be higher than before. It is no surprise then that Scientific Gaming’s lease of 91,000 sq ft at Omega in Warrington has a headline record rent of £9.5/sq ft – the headline rent of the year before was £8/sq ft.

Other notable leases included Jet2 taking 152,000 sq ft at MA6NITUDE in Middlewich and TK Maxx’s leasing of 456,700 sq ft at PLP Crewe.

While the big box market suffered, the mid-box and multi-let industrial property markets remained strong, B8RE said.

“Economic uncertainty, influenced by inflation and rising interest rates, has undoubtedly resulted in caution on the part of occupiers,” said Will Kenyon, B8RE industrial agency member.

“However, with almost 1.27m sq ft of space in solicitors’ hands and several unsatisfied high-profile requirements we anticipate stronger take-up levels in the second half. Low supply levels are helping to maintain rental growth.”

Kenyon also noted the growing importance of ESG credentials in the leasing market.

“Operational efficiencies and ESG credentials continue to be important to occupiers and many are looking to move to more modern premises,” Kenyon said. “An increasing number of investors are also announcing they are unable to acquire assets that do not meet their ESG requirements.”

About ESG

Kenyon’s observation builds upon a recent Knight Frank report which clocked that more than half of the North West’s warehouse space could become ‘unlettable’ by 2030 because of its inability to achieve a minimum EPC rating of B.

This is not just a North West issue. The national government is enforcing a requirement for all industrial space to be EPC C by 2027, and then EPC B by 2030. Nationwide, Knight Frank notes that the EPC B requirement would eliminate 404m sq ft of industrial space from the letting pool.

Properties that can offer ESG credentials stand to benefit, with industrial rents predicted to grow by 3.1% a year over the next five years for these units, according to Knight Frank.

“Landlords who take action now to retrofit are already reaping the rewards,” said Knight Frank senior surveyor Bradley Norton. “Occupiers are prioritising more energy-efficient premises as they look to deliver on their own ESG credentials and with a slow-down of new stock, second-hand space has to be improved.”

Charles Binks, head of logistics and industrial at Knight Frank, elaborated: “While newly constructed warehouses generally meet top sustainability standards, 82% of the UK’s existing stock built before the year 2000, do not meet minimum EPC requirements.

“It is obvious that significant capital expenditure is required to retrofit these warehouses and mitigate obsolescence risk, however just 6% have undergone upgrades in the past five years,” Binks continued.

“The prospects for rental growth should offer incentive. However, investors must accelerate the rate at which older facilities are upgraded or they will become unlettable.”

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