New tenants signal rental growth on refurbished industrial space in pent-up Scottish Central Belt

11 May 2017

On behalf of Canmoor Asset Management, Savills has negotiated 40,000 sq ft of new lettings at Westfield North Courtyard, Cumbernauld following extensive refurbishment on five previously vacant units.

UK supplier of timber, SCA Timber Supply Ltd, has agreed to a new 15 year lease on  30,000 sq ft; Trane UK Ltd, the air conditioning system supplier, has signed a new 10 year lease on 6,000 sq ft, while Amey plc, the infrastructure support service provider, has also taken 6,000 sq ft on a shorter 2 year term. Collectively the deals have increased the headline rental rate at the industrial scheme on from £3.75 per sq ft six months ago to £4.50 per sq ft. This leaves just one unit of 14,000 sq ft available within the estate.

Ross Sinclair, director in the business space team at Savills Glasgow, comments: “The reality of Scotland’s shortage of industrial stock in the Central Belt is success for landlord’s willing and able to invest in the refurbishment of existing assets. The supply of good quality industrial space along the M8 Corridor has been severely compromised  for a prolonged period of time. 

“Despite the demand versus supply imbalance, construction costs and the lack of competitive funding will continue to conspire against the ability to develop and a common feeling of frustration by landlords and tenants alike is the difficulty of meeting targets for investment returns and operational needs respectively. As long as  the investor / developer is unable to deliver a viable industrial development, the progression  of occupational businesses is prevented through an inability to relocate to expand, grow and adapt.

“By consequence, newly refurbished and configured industrial accommodation in the area is letting quickly, some pre-letting, and schemes like Canmoor’s Westfield North are showing signs of rental growth.”

Ian Murray Director at Canmoor adds: ‘Westfield North has always provided well located multi let units with almost direct access onto the motorway network. Following our significant investment the units now offer some of the best space available in the region and we continue to benefit from continued letting progress.’

Savills jointly advised with JLL.

 
 

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Key Contacts

Ross Sinclair

Ross Sinclair

Director
Agency

+44 (0) 141 222 4145

 

David Cobban

David Cobban

Director
Office & Industrial

Savills Glasgow

+44 (0) 141 222 4101