Gerald Eve property market score* Humberside rank 25/26 regions 1
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
*see Glossary for definitions of scoring methodologies
Distribution market Great Yarmouth
we
amsgate
r
2
Labour market
Average population within 4.5 hour HGV drive time
Average population within 2.5 hour HGV drive time
Lowestoft
Average cost of a warehouse/forklift operative (per hour)
Unemployment rate (% working age)
74%
43%
£8.08
5.3%
UK average 77%
UK average 54%
UK average £8.62
UK average 4.6%
Investment As is commonplace in regions which are not regarded as established distribution locations, the volumes of annual investment traded in a given year can be erratic. The total volume of investment transactions during 2017 was £67 million, a significant jump on the total of £3 million transacted in 2016.
The largest deal was the purchase by Warba Bank (Kuwait) of Kia Motors UK unit in Kiln Lane Industrial Estate, Immingham for £24.6 million reflecting a 5.5% yield. The regional average prime yield has followed the national trend and sharpened to 6.15% at the end of 2017.
Key investment transactions Location
Tenant
Purchaser
Price (£m)
Yield (%)
Kiln Lane Ind Estate, Immingham
Kia Motors UK
WarbaBank (Kuwait)
24.58
5.50
Rawcliffe Road, Goole
XPO Supply Chain
Foxhills Ind Estate, Scunthorpe
Bibby Distribution
Private investor
8.12
7.25
Oxenwood Real Estate
7.23
9.14
Boothferry Road, Goole
Jablite
Vinter Estates Ltd
4.60
6.87
Britannia Way, Goole
Restore
Olo Real Estate Ltd
2.92
7.90
Outlook
Key Contact
Three purpose-built buildings completed in 2017, totalling 665,000 sq ft and currently there are two design-and -build units being developed. In spite of availability being one of the lowest across all our regions, Humberside has not seen any speculative development activity for the last 5 years. For the last two years, rents have not moved significantly but we expect to see upward pressure in the coming years as infrastructure and development activity at key ports attracts higher rents. We expect the region will continue to attract key regional manufacturers, especially given the potential for further development at ports such as Immingham, and we have recorded interest from Heathrow Airport for offsite construction centres in the region. We forecast a below average annual rate of 1.7% for the five year period, with the majority of this growth taking place from 2019 onwards. Prime headline rental growth forecasts
Humberside %, per year 2018-2022
1.7%
UK average %, per year 2018-2022
Richard Sherington Tel. +44 (0)113 204 8405 Mobile +44 (0)7818 423154 rsherington@geraldeve.com
2.6%
43