Property consultants Colliers CRE has announced three deals involving the leasing of one million sq ft in just four weeks - including one of the largest available warehouses in the UK.
The lettings included a 640,000 sq ft distribution warehouse to leading high street retailer Primark, which has carved out a high street niche making it less affected by the credit crunch induced setbacks that have hit other retailers.
Primark’s move to the Thrapston distribution warehouse, formerly used by furniture retailer IKEA, is the third major commercial property deal to be completed in July/August. The 640,000 sq ft warehouse, the freehold of which is still owned by IKEA, is being leased at £4.50 per sq ft for a term of ten years.
Highlighting the success of Colliers in the current challenging market, Richard Lawrence, director - logistics & industrial at Colliers CRE, said: “These three deals show that even in the current times the distribution market is holding up. The Primark deal in particular illustrates just how it’s business as usual even in challenging economic times.
“The Thrapston distribution centre is one of the largest lettable warehouses in the UK, and Primark were keen to complete the deal - moving in almost immediately.
“We are finding that there is still demand for properties that provide the answer to the needs of businesses – life is going on despite difficult times and we are seeing high levels of interest for many of the properties we have on our books.”
The two other substantial properties Colliers have sealed deals on this month include the Titan 10 distribution warehouse in Bilston and Unit 5 Mariner Park site, Tamworth. Titan 10 is being leased by palletised freight distribution network, Pallet Track, at £4.95 per sq ft and the Mariner Park site has been taken up by fleet rental company, Barloworld, at £4.50 per sq ft.
Pallett Track has confirmed plans to spend a six figure sum on the Titan 10 building for its overnight freight handling operations, investing heavily into IT systems. The site is expected to be fully operational by October 2008. Each of the three distribution centres include warehouse and office facilities.