Location is everything for booming County Durham

Apr 2 2008 by Graeme King, The Journal

County Durham is a growing hot spot for industrial development in the North East. Simon Hill reports.

BENEFITING from excellent transport links with the A1 and A19 providing the two main commercial routes into the North East, County Durham is becoming a major draw for industrial developers.

The county has attracted a high level of new industrial development over the past year. With further major developments in the pipeline, it is proving to be a key industrial and distribution location within the North East property market, attracting new industrial developments and a high level of investment.

Key developments include Faverdale East Business Park in Darlington where Easter Group has developed 190,000sqft of speculative industrial and distribution space alongside the Argos Direct regional distribution centre.

The units range from 20,000sqft to 100,000sqft and are available to let or purchase at rents of £4.50 sqft.

Further North along the A1 at Newton Aycliffe there are a number of significant developments including the start on site of a 460,000sqft regional distribution unit by Lidl.

Also, Merchant Place Developments have planning permission for their proposed distribution scheme, which includes a total of 1,394,700sqft of industrial space.

Newton Aycliffe offers a range of second hand industrial stock at Aycliffe Industrial Park, with units ranging from 1,000sqft to 65,000sqft, which are available to let or purchase. At Spennymoor there is a 70,000sqft second hand industrial unit available at a competitive rental.

A significant new development is Foxcover Industrial Estate in Seaham, where King Sturge has let a 125,000sqft unit to Cumbrian Holdings Ltd, achieving a headline rent of £4.75sqft and a further 130,000sqft is currently under offer.

The developers, Grantside, have also completed a second phase offering two further units of 37,000sqft and 62,000sqft, which are available to let at rents of £.4.75sqft.

The availability of port facilities at Seaham and the ongoing regeneration of the town centre have helped increase demand in the area.

Seaham also has the benefit of being closely situated to the A19 corridor which is now a major route for new business developments. Such developments are bringing new jobs to the area and can only help the economy of the region.

Also near the A19, Whitehouse Business Park at Peterlee has proved successful. Unit 1 was pre-let to Metromail, a national mailing house owned by Saga Group, and King Sturge have sold two units to local businesses Sotech and GT Group, leaving one remaining unit of 40,000sqft which is available to purchase.

Just one mile north of Durham City Centre, J62 at Belmont Industrial Estate offers new warehouse units ranging from 4,106sqft to 50,000sqft.

Meanwhile , a major new industrial / distribution scheme has been developed at Drum Industrial Estate in Birtley.

Drum Park offers three major new warehouse buildings ranging from 83,000sqft to 336,000sqft.

Simon Hill is industrial partner at King Sturge in Newcastle.