Industrial Market Review

Northamptonshire and Rugby industrial and logistics review H1 2015

Northamptonshire and Rugby have seen strong take-up at the start of 2015, but limited availability of industrial stock is likely to constrain take-up going forwards.

In this issue:

Northamptonshire and Rugby take-up set to increase

  • The first half of 2015 saw the strongest start to the year since 2006, with 4,657,880 sq ft completed from 106 transactions, representing a 30% increase on the first half of 2014. 
  • There have been 15 deals over 100,000 sq ft so far in 2015, compared with 15 deals within this size range for the whole of 2014.
  • Only 15% of transactions have been on a freehold basis. This represents 614,260 sq ft of the overall take-up. Landlords are focussed on lettings and the improved capital values generated from the harder terms available from occupiers and yield compression in the investment market.
  • Good quality stock has been eroded, especially in the 20,000 to 40,000 sq ft size range. There have been 14 deals already completed this year, whereas only nine transactions took place within this size range for the whole of 2014. 
  • Lease terms are hardening, particularly on refurbished units. Four to six months’ rent free is becoming more common for a five year term certain, down from nine months in 2014, and rents are rising as occupiers are increasingly required to compete for space.
  • Prologis completed the letting of DC7 at Grange Park, a 342,662 sq ft speculative unit, within one month of practical completion. Clipper Logistics has taken a ten year lease at £5.90 per sq ft.   
  • Howdens withdrew from their proposed 2.4m sq ft BTS facility at junction 15 of the M1 and instead have taken 867,000 sq ft in three buildings in Northamptonshire, including 655,000 sq ft at Warth Park, Raunds. 

Current and projected industrial rents across the region


Prime rents 2014   Prime rents 2015  Secondary rents 2014

Secondary rents 2015

Northampton  £6.25  £6.50  £4.50


Daventry  £5.25  £5.50  £4.50


Wellingborough  £5.25  £5.25  £4.50


Rugby  £5.75  £6.00  £4.50


Looking forward

  • The A45 Daventry Link Road has been granted planning consent and has now received funding approval. This road will improve journey times and reliability to the M1 J16.
  • The first phase of the planned duelling of the A43 from Northampton to Kettering at the Round Spinney roundabout has been approved. This will be a significant improvement on the current infrastructure linking Northampton and Kettering.
  • During the first half of 2015, a new 85 acre allocation of land promoted by Hampton Brook was approved within the Joint Core Strategy located at junction 16 of the M1.
  • Talk of upward pressure on prime rents during 2014 has begun to take hold.  Secondary rents have also continued to improve for quality refurbished stock rising by 6% during 2014 and predicted to see similar grown during 2015.
  • The second half of 2015 will be challenging from a supply perspective, although it is anticipated that speculative development currently underway will be bolstered by further announcements and starts on site for delivery in 2016. 

An acute lack of good quality stock

  • There is currently just over 1m sq ft of speculative space under construction in three locations; Northampton Commercial Park, G. Park Daventry and Rugby Gateway. 
  • Current industrial availability in Northamptonshire and Rugby stands at approximately 2.3m sq ft, although this will reduce by 26% should all the properties currently under offer from the first half of 2015 complete.
  • Proposals are being considered by a number of developers to build speculatively in prime locations where infrastructure connections are already good or improving. 
  • There is an acute lack of good quality stock across all size ranges. This is particularly illustrated in the 20,000 to 30,000 sq ft size range where there are only seven buildings available across the region, of which only one is grade A. 

Want more information about this Snapshot?

James Hill

01604 664383

Email me


Contact us now

James Hill
Director - Industrial

01604 664383

How can we help?