Teesside industrial rents set to top £5psf

August 20th 2015

INCREASED take up and demand could see rents for smaller industrial units in Teesside top £5psf in the next 12 months, according to one of the areas leading commercial property agents.

Stephen Brown, senior partner at Dodds Brown LLP,said: "Lack of availability of smaller quality industrial stock in Teesside is already putting upwards pressure on rents which are presently moving up towards £4.50psf.

"Despite the drop in the oil price, in the past six months we have experienced increased take up and demand for industrial units across Teesside and throughout the Tees Valley, as local businesses look to take advantage of improving economic conditions by expanding and moving into larger premises."

However, with 90% of units already let at Riverside Park, one of the last available major industrial estates offering quality accommodation on Teesside, there is already have a waiting list of prospective tenants looking for units of a specific size, whose requirements we cannot at present fulfil.

Attracted by low interest rates and the increasing willingness of the banks to lend, some businesses with cash in the bank are looking to avoid increasing rents by acquiring the freeholds of industrial properties, but due to increasing shortage of properties freehold prices are also rising.

Mr Brown added: "We are working closely with public sector bodies, developers and landlords to bring new development opportunities, and new and refurbished properties to the market, but with a limited number of shovel ready development sites in the area, upwards rental pressure on industrial units of all sizes will only increase.

Dodds Brown acts as agent for a number of properties on Riverside Park and for other industrial developments across the Tees Valley.

From its offices in Middlesbrough, Dodds Brown LLP is an independent firm of Chartered Surveyors which offers a comprehensive commercial property service and unrivalled local market knowledge across Teesside and throughout the Tees Valley.

Dodds Brown can be contacted by telephone on tel. 01642 244130 or by email prop@doddsbrown.co.uk or via the firms website www.doddsbrown.co.uk