A shortage of development-ready land is hindering the delivery of new mid-box units across West Yorkshire, despite strong demand from developers and occupiers, according to global real estate advisor Avison Young.

The region has seen significant take up of mid-box units (typically defined as ranging from 30,000 to 100,000 sq ft) following a number of schemes being developed over 2022 and 2023. However, most of these units have now been leased and only a handful remain. The supply of second-hand units is also constrained, with very few being returned to the market.

Demand remains robust and diverse, with interest from occupiers across a wide range of industries and sectors, including manufacturing, warehousing and distribution, demonstrating the vital role that mid-box units play in regional supply chains.

Prime rental levels for mid-box developments have risen to £9.75-10.25 per sq ft, driven by demand. This rental growth – alongside stabilising building costs, the lowering cost of finance, and investment yields strengthening - is supporting the viability of development.

Rental growth is not confined to new units but has also increased strongly on second-hand units. However, the key issue holding back the supply of new units is the lack of suitable sites available for purchase, and the time typically needed to secure detailed planning consent.

Amid the current shortage of sites and mid-box units, a site in Wakefield has become available. Located off Flanshaw Way, with excellent access to the M1 via Junction 40, the Centric 40 site may appeal to occupiers operating in the Wakefield area or along the M1 corridor between Sheffield and Leeds.

The developable area of approximately 3.7 acres is level and rectangular, with two access points facilitating development of two mid-box units. Outline consent was granted in 2017 for a four-unit scheme on this plot and the adjacent plot to the front, and the site sits within an established industrial estate.

The plot to the front has recently been developed for a small unit scheme and is fully let. The remaining plot could also suit low-density or part-open storage use, or a terraced multi-unit layout. The site is being brought to market by the Leeds office of Avison Young.

Rob Oliver, Principal, Industrial at Avison Young UK, commented:
“Demand for mid-box space across West Yorkshire remains strong, but the challenge continues to be the availability of development-ready land for the next phase of supply.

“Sites like this one in Wakefield are increasingly rare and their emergence is crucial to keeping pace with occupier needs and supporting regional supply chains. We anticipate a wide range of interest in it and indeed are already engaging with a number of interested parties.”