Page 212 - Minutes of meeting

The Commercial Challenge

Demand & Supply - Industrial

Headline Indicators (Δ past 12 months - CoStar)

Total Industrial Stock

Both CoStar and the ESPS record no change in industrial market stock over the last 12
months with stock remaining the same (c. 900,000 sq. ft). The increase in new stock across
Cumbria has also been low (<1% increase).

According to the aforementioned market sources, vacancy rates are low at below 1% which has
fallen over the last couple of years. Based on CoStar data this appears to be linked to the take-
up of a relatively large premises (16,000 sq. ft) at Park Road. The ESPS report notes that
following recent investment in the Dreadnought submarine programme (BAE Systems) continues
to be the main economic driver for Barrow and is supported by a number of associated supply
chain companies based in the town and the wider Furness area.

Market rents are currently between £4 - £4.50 per sq. ft, slightly below the Cumbria average
(£5 per sq. ft). There is currently no new industrial space under construction and similar to
the office market, the stock of industrial premises is dated with the majority of stock pre-dating
2000. However, new industrial premises were built at the BAE Systems complex in 2017.

The ESPS also observed that the stock of available industrial premises does not provide the type
and fit-for-purpose space needed to meet local demand. As with office premises, the number of
enquiries for industrial premises are consistent for smaller employment space, which the current
stock cannot satisfy.

Copyright © Hatch 2018. All Rights Reserved. Data source: CoStar,
2020