Report warns Yorkshire economy stunted by lack of small warehouse space

BIG things in SMALL boxes, a new report by Leeds-headquartered property company Potter Space, in partnership with Savills, examines the link between small to mid-box industrial units – those under 100k sq ft – and the economy, among other topics.

Between 2014 and 2023, the region experienced suppressed demand of around 10.6m sq ft, meaning that businesses are forced to ‘make do’ with smaller or unsuitable premises, and are prevented from scaling up.

Had demand been realised, this space would have had the potential to create around 15,800 jobs and contribute around £0.5bn to the economy per year.

Jason Rockett, MD of Potter Space, said: “The small to mid-box market is absolutely critical to the economy because it provides space for SMEs to thrive and grow, and as SMEs become bigger, they create more jobs and are more economically productive.

“What we’ve seen in Yorkshire and the Humber over the last decade is that businesses don’t have access to high quality, well-located, affordable space and can’t scale up as they should. As demand is outstripping supply, rents are spiralling at almost three times the rate of inflation, and this is an extra burden on businesses at the start of their growth journey.”

Over the same decade, rents on sub-100k sq ft premises in Yorkshire have increased by 81%, while inflation was 29%. Availability of space has dropped from 10% to 4.6%, well below the industry equilibrium rate of 8%.

Jason continued: “We need a concerted effort to support businesses in Yorkshire. We all understand the need for housing in the region, but new and growing businesses need homes as well. Planning teams need to take a holistic approach that enables land to be freed up for light industrial spaces as well as residential purposes.”

For more information and to download the report, named BIG Things in SMALL Boxes, for free, visit https://www.potterspace.co.uk/big-things-small-boxes?utm_source=Press&utm_medium=ads&utm_campaign=btisb20024&utm_id=ppr_btisb