The opening of the new £82m Hitachi Rail Europe facility in September has coincided with the park’s biggest letting of 2015, heralding a shortage of industrial and warehouse space on the 700-plus acre estate.
That’s according to Teesside commercial property agent Connect property North East (CPNE), which formed earlier this year to provide investment and occupational advice across the North-East.
On behalf of MSeven Real Estate, CPNE has successfully negotiated the letting of 2-5 Central Park, comprising of a 50,000 sq ft warehouse to Vantec Europe, representing the estate’s single biggest letting in 2015.
With the agreement to lease having now been signed, the landlord is due to complete a major refurbishment programme to coincide with the letting of Unit 6 to Ceva Logistics. Work is due to complete shortly, enabling both tenants to take occupation later this year.
CPNE director Jonathan Simpson said: “These two lettings are significant evidence that both rents and demand have moved on significantly during the middle part of 2015.
“The issue moving forward now is the limited availability of stock both in Aycliffe and the wider region. As far as Newton Aycliffe is now concerned there is a real shortage of industrial stock, which is huge testament to both the improved market and the continued commitment to the area by a number of proactive landlords and stakeholders.
“Five years ago, there was over 1.5 million sq ft of vacant industrial stock on the estate.
“Furthermore, we are hoping to announce two further high-profile lettings on the estate shortly, one of which involves the former Holiways Ford garage on Horndale Avenue.”
Perhaps further testament to the estate’s recent change in fortune has been the owner of Northfield Way’s commitment to a £1m refurbishment. Works are due to be completed in November and we are already in the process of agreeing several new lettings, including the most recent to furniture company RDNL Products, which moved into unit 10 at the end of September.
CPNE was formed in February this year by Tim Carter with fellow directors Jonathan Simpson and Andrew Wilkinson joining forces to create the Tees Valley’s only specialist niche commercial agency practice.
• More information is available at www.cpne.co.uk