DNA and medical laboratories are leading a surge in North-East industrial property take-up. The first half of 2014 saw more than a million-and-a-quarter sq ft of space contracted — double the figure for the same period last year.
According to Simon Haggie, a partner with Knight Frank, the rising logistics and industrial activity reflects the “strong, pent-up demand” that was evident at the end of 2013. “Although occupier confidence has certainly improved in the region,” he added, “companies remain both cautious and cost conscious in their property strategies.”
Developer confidence in speculative builds remains fragile, while the anticipated appetite for bespoke pre-lets is yet to materialise, Haggie stressed. “As a result the availability of new and modern stock is becoming increasingly scarce.
“There is little indication that developers are willing to bring forward speculative schemes in the region, meaning new development is only likely to come forward via design and build agreements,” he cautioned.
While the first half figures were boosted by Hitachi Rail Europe starting construction of its new 460,000sq ft rail plant at Merchant Park, Newton Aycliffe, it is high-tech labs and production making the summer property headlines.
Founded in the North-East and spun out of Newcastle University, Geneius Laboratories, has confirmed it is leasing a 20,000sq ft building at Colbourne Crescent, Nelson Park, Cramlington. The move from its campus laboratory space to the Northumberland site is a step change for the world leading DNA-based food and drinks testing company.
“The building, owned by UK Land Estates and which has just undergone a £3m investment to convert it to a state-of-the-art laboratory, represents a perfect opportunity for us,” says Professor Jerry Barnes, managing director at Geneius.
“Our unique DNA-based methods deliver unprecedented levels of accuracy and speed for food and drink producers and major retailers,” said Barnes. “Geneius also provides microbial identification and strain typing services delivering powerful CSI-style investigative tools to explore issues both in the factory and supply chain.
“The acquisition of this laboratory has enabled us to fulfil our expansion plans ahead of time,” he added. “We have relocated, attained the rigorous accreditations necessary for our operation, and continued to deliver our services without a pause — a success for all the agencies involved and a tribute to our team at Geneius.”
In a second science-based relocation, Bristol Laboratories is about to establish its first North-East base by taking over the former Reckitt Benckiser plant in Peterlee, County Durham. With an £80m turnover, Bristol develops, manufactures, markets and distributes medicines and formulation healthcare brands. It already has a production facility in Bedfordshire, with a head office in Berkhamsted, and estimates its new plant will be up and running by early next year.
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