St. Modwen Industrial & Logistics completed 0.9m sq ft of new space in 2019 as demand continues for high-quality, well-located mid-box units. With 1.5m sq ft of space already committed for 2020, the dedicated industrial and logistics business of St. Modwen Properties expects to complete up to 1.7m sq ft of new space in 2020, over 90% of which will be retained.
Around 80% of the committed pipeline is focused on small to medium sized units of less than 150,000 sq ft, leaving St. Modwen Industrial & Logistics well positioned to benefit from the growing demand for last mile delivery space, as evidenced by recent lettings to Ocado and DHL, and warehouse space near urban locations.
By continuing to invest in areas of growth and through the sale of non-core assets, St. Modwen’s industrial and logistics assets now account for 44% of the company’s wider portfolio. Future growth is supported by a total pipeline which expanded in 2019 to c. 19m sq ft.
Key completions during 2019 included a 151,000 sq ft unit in Avonmouth which was let to Ocado on a 17-year fixed contract; 173,000 sq ft across three units at Gloucester, the first of which was let to a UK engineering firm; 103,000 sq ft at the third phase of the successful scheme in Burton; and 95,000 sq ft across two units in Lincoln which was let to DHL and an international food manufacturer.
Rupert Joseland, Managing Director of St. Modwen Industrial & Logistics, commented: “Our dedicated industrial and logistics business, which was only formally launched in 2019, is already making its mark with strong leasing activity, major developments and impressive pipeline growth. Our relentless focus on enhancing customer experience has attracted a diverse mix of occupiers, particularly in the mid-box market. This year is already set for greater growth, 1.5m sq ft of space already committed and we’re underpinned by a c. 19m sq ft total pipeline.”