Marc Ballard, director at property consultancy Salloway, talks about Pride Park and how the Business Park has moved away from its industrial roots and exactly how it could evolve in the future.
Conceived as a development for high-quality industrial occupiers, Pride Park has evolved in a different direction due to market forces.
Today, there are a handful of large-scale industrial operators on the park; print firm Colourstream, engineering business Trac Baker and Frenger, specialising in energy efficient chilled beams to cool buildings. However, those manufacturing firms that have secured a place on Pride Park can count themselves lucky as there are no plots left capable of accommodating further industrial development.
We are presently witnessing demand from manufacturing businesses for the premises in high-profile locations, not tucked away on tired industrial parks. In my experience, these occupiers are becoming more image conscious, attempting to add value to their business by operating from properties superior to their competitors.
The demand for new and well located space and the absense of built stock is now having an impact on values in the market place.
Indeed, I have just agreed terms for a £14,000 sq ft industrial shed just outside Pride Park at over £6 per square foot per annum, a rate which was unachievable for such space even before the financial crisis. This suggests that there is a demand for prominent, well located shed space but little supply.
Reviewing our known requirements, there are a number of industrial occupiers that would jump at the chance to be on Pride Park if there was any space.
There is the old gas holding tanks next to TC Harrison that were bandied around the market a few years ago. It is difficult to see how an industrial development on this site could possibly realise the value to make the enabling works worthwhile. Given its location next to the new veledrome, it could lure leisure and retail operators with the potential to generate more immediate revenues.
Though Pride Park is not fulfilling its original purpose, Derby is currently well served for deliverable, prominent industrial sites.
Ivygrove Developments has Westside Park on Raynesway, Morgan industrial Properties has its Northgate site on Alfreton Road, and there are over six acres with planning consent at Victory Park in Sinfin. Added to that, infrastructue work on the Global Technology Campus will start before long, helping attract high-tech industry.
Nevertheless, there are no built warehouses and the design and build route is necessary.
Considering the current levels of demand for high quality, prominent shed space, we can only see values going one way.
Pride Park may not necessarily be fulfilling its oringinal objective as an industrial hub, but it is certainly shaping the need through its success for occupiers to seek space on Derby's growing list of industrial and high-tech manufacturing developments.
For details of commercial property opportunities available on Pride Park and locations throughout Derbyshire please contact Salloway Derby on 01332 298000 or firstname.lastname@example.org