Milton Keynes warehouse market smashes major milestone

Lettings, pre-lets and sales of warehouse and industrial units in Milton Keynes have smashed through the one million sq ft milestone as more and more major companies are attracted to the city.

Booming Industrial and Warehouse Sector

The industrial, warehouse and distribution sector has enjoyed one of the best years yet, with a huge take up of space as demand has surged.

Local occupiers have been ramping up in size, while national and multi-national occupiers are increasingly gravitating towards Milton Keynes.

One of the key sites is PLP MK, a logistics park which has achieved some of the largest lettings: 

• Amazon challenger JD (310,949 sq ft and 220,570 sq ft) 
• Kegstar (147,015 sq ft)
• Huel (71,810 sq ft)
• Masters Distribution (37,797 sq ft)
• KWB London (15,156 sq ft)

One of the UK's leading distributors of industrial automation and control products, Routeco has signed a pre-let agreement on a new bespoke HQ facility at Shenley Wood in Milton Keynes. The deal means the company can consolidate its existing three Milton Keynes sites into one headquarters, retain its current workforce and create new jobs for local people.

Developer Hampton Brook is delivering two warehouse units on the site at the heart of the Oxford/Cambridge Arc with Kirkby Diamond currently marketing the remaining 71,810 sq ft leasehold opportunity.

Meanwhile, a 36,067 sq ft research and development headquarters at Sherbourne Drive, Tilbrook – known as the home of Formula One’s Red Bull Racing - was sold on behalf of a private investment company. It was acquired by an expanding Milton Keynes business operating in the technology sector. It achieved a figure close to the £6 million asking price. 

At Stratus Park, Brinklow, just two vacant units remain after it welcomed two new occupiers who have moved from premises in the city with plans to expand their operations. Online retailer Goofybuy Ltd took two adjoining units with 39,202 sq ft, while two more units, with a total of 53,009 sq ft, were let to Bakro International Transport.

In Tongwell, one of the leading names in luxury vehicle modification accelerated its expansion after agreeing a deal for a new base. Urban Automotive - a bespoke modifier of top automotive brands including Land Rover, Mercedes, Lamborghini and Rolls Royce – signed a 10-year lease on a 42,765 sq ft warehouse unit at Michigan Drive. The company, which is well known for supplying celebrities and sports stars with customised vehicles, is expanding its operations following investment from its European distributor AM Group Holdings.

Future Development and Potential
 
Kirkby Diamond’s land, planning and development team is currently advising on sites totalling over 300 acres, with a potential of over 4.5 million sq ft of new warehouse/industrial buildings. These potential developments are at various stages, from land assembly through to reserved matters in planning.

Eamon Kennedy, Head of Industrial & Logistics at Kirkby Diamond said:

“I joined the firm 25 years ago and I am struggling to remember when there was such a great year in the Milton Keynes market. With over one million sq ft of deals completed in the first half of the year alone, the evidence is clear that local, national and multi-national businesses now increasingly recognise the major benefits of operating in the city.

“What’s more, the signs are very encouraging moving towards the end of the year, with businesses still very keen to invest in industrial/warehouse properties. Milton Keynes, Luton and other towns and cities in the region are very sought after locations.”

Paul Quy, Head of Milton Keynes Agency at Kirkby Diamond, said:

“It’s wonderful to see that demand has come alive, with very healthy requirements for warehouse and industrial units of all sizes. With several development sites in the pipeline, we expect strong interest to continue well into the future. Now, more than ever, it’s imperative that we push these sites through as stock is being eroded.” 

View recent Industrial & Logistics transactions