Andrew Pexton
Regional Director – North West
CBRE’s latest industrial and logistics market report confirms what our team has seen for some time: demand in the North West is strong and underpinned by a diverse regional economy and consistent growth across several sectors.
The increasing need for high-quality commercial sites is no great surprise. The big question is how we can meet demand and deliver quickly. We need all parts of the development industry firing on all cylinders to capitalise on the opportunity to deliver economic growth for the North West.
Demand drivers and a growing pipeline
Harworth has built up a significant development pipeline in the region and we’re committed to pursuing even more opportunities in I&L, as highlighted during our recent capital markets day. In 2025 we’ll push ahead with direct development at two of our sites that have outline planning permission. Taken together, Chatterley Park in Newcastle-under-Lyme and Wingates in Bolton will offer circa 3.6 million sq. ft. of Grade A commercial space to the region.
This is part of our consented I&L pipeline of 9.6 million sq. ft. across the country and will add to our successful development at Logistics North. Built on the former Cutacre mine near Bolton, this site is now the base of over 5,500 jobs and companies like Aldi, Amazon and Lidl.
Meanwhile Greater Manchester’s Places for Everyone – a strategic plan for the city-region – is promoting new opportunities for development and is the sort of joined-up approach we need. It has created the ability for developers to bring forward new plans – for us this includes delivery of an additional 4.7 million sq. ft. at Wingates.
Further west, the expansion of Liverpool’s ports, and the area’s Freeport designation, means increased capacity to facilitate trade – which will create even greater demand for logistics and other commercial spaces.
Along with industrial growth, the government’s mission to deliver 1.5 million new homes will only create further demand for I&L spaces. New communities will need spaces for people to work and shop, and every new household creates greater need for appliances, furniture and consumables that at some point are likely to be stored in warehouses or logistics hubs. It therefore becomes vital that the role of I&L development is not overlooked or deprioritised when focused on housebuilding.
Unblocking the system
Planning reform is crucial to providing developers, investors and occupiers with the long-term support and certainty required for growing these industries. This will especially help to grow our region’s burgeoning industries that are driving economic growth at a time when there is a renewed national agenda to do so.
The government’s proposed NPPF changes to emphasise the importance of commercial development shows policymakers recognise the growth of I&L and its value to building a prosperous economy. There will be new opportunities to feed into the expansion and improvement of national infrastructure like data centres and grid connections. Similarly, Labour’s intention to release areas of low quality Green Belt land – the ‘grey belt’ – offers considerable potential for I&L development in our region.
It is also important we commit to further investment in skills. The planning system will require significantly more personnel to meet the demands of increased and accelerated development. Equally we must develop skilled talent to help attract businesses and private investors.
Market outlook and occupier demand
The sector’s outlook remains positive in spite of recent geopolitical and economic uncertainty. That is why it is crucial we incentivise investment in the UK and onshore critical supply chains. Delivering commercial schemes at pace also requires greater collaboration between the public and private sectors, and sustained commitment from all involved.
Delivery models for large-scale commercial developments are changing all the time, and there is impressive innovation happening in the UK with blueprints for how to do it well and sustainably.
Harworth is working with occupiers and inward investors to co-locate traditional I&L with green growth industries like biotechnology and agritech, life sciences and advanced manufacturing. These sectors are hotbeds of innovation and by prioritising co-location of industry we can help de-risk development proposals and create diverse economies that will safeguard against an overdependency on one industry and one type of employment.
The North West is already in a prime position to take advantage of an ever-growing I&L demand. We must ensure that we give this type of development the attention it deserves and encourage support from the public sector to help it go from strength to strength.