Road Transport Directive Influencing Property Boom

21-07-2006

Demand for distribution and warehousing space in the North-East of England is on the up. The UK's leading B8 operators and developers are now looking seriously at investing in the North-East as a location.

One of the main drivers for this is the potential impact of the EU Road Transport Directive. Part of the EU Working Time Directive, this legislation limits drivers to an average working week over a 26-week reference period, in addition to the maximum 60-hour week.

As a result this has already started to lead to the formation of Regional Distribution Centres to supplement centralised distribution hubs. Already activity in the 'Big Shed' market is increasing.

There is already around 2 million sq ft of warehouse space planned for the North-East region of England in the next 12 to 18 months, primarily influenced by the demand of the distribution market.

Recent examples of operator demand led by the retail sector are follows:

• Argos Direct distribution centre, Darlington. This unit serves Northern England, Scotland and Northern Ireland and at 740,000sq ft is the largest specialist B8 unit in the region.
• Asda distribution hub, Washington. This 330,000sq ft unit is primarily used for their George clothing range. Asda have also recently built a 360,000 sq ft distribution centre at Teesport.

High demand coupled with a modern and robust road network will ensure that the North-East of England will remain a part of many companies' long-term distribution strategies.

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