Ivan Scott, Divisional Partner at Glenny and head of the Harlow office, talks to this week’s Estates Gazette about why Harlow will be the next big logistics and industrial destination for developers and occupiers alike.
With ever-decreasing employment land supply in areas such as North London, rental and capital values have risen sharply over the last three years. Consequently, many traditional North London occupiers can no longer justify these higher costs, which have been driven up by internet retailers and just-in-time parcel delivery firms following the burgeoning ‘urban logistics’ model. As a result, Harlow is becoming a significant growth market.
As stock diminishes, occupiers are being forced to consider ‘value’ alternatives to North London; Harlow, which is only 15 miles to the north, is the closest major market and can offer stock at a significant discount when compared with other areas closer to the M25. As Glenny’s Q3 2017 Databook indicates, with prime North London rents reaching £12.00 per sq. ft., Harlow offers a compelling 30% discount.
Despite this, the majority of Harlow’s employment stock is located to the north of the town – previously a poorly-connected area that suffered serious congestion at peak times. However, the creation of Junction 7a on the M11 is a timely infrastructure improvement, which is set to widen Gilden Way, alleviate traffic at the existing Junction 7 and make access to this area of town far more efficient.
In short, Harlow’s excellent strategic location to the north of London, as well as its the upcoming infrastructure improvements and good local labour supply, make it a huge growth area with serious future industrial and distribution development potential – assets which are already attracting a number of developers.
If you’re looking to acquire or dispose of logistics or industrial space in the Harlow area, contact Ivan at email@example.com or call Glenny’s Harlow office on 01279 312201.