< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY N ew figures show another record breaking half year for UK logistics take up, with Yorkshire capturing a significant share of this. The latest research from CBRE, the global real estate advisor, highlights that take-up of UK logistics space reached 22.56 million sq ft in H1 2022 - an increase of 10% compared to H1 2021, which saw take- up total 20.5 million sq ft. Demonstrating the region’s prowess in logistics, Yorkshire & the North East were at the forefront of the take-up with a 16.8% share. The second quarter of the year is where Yorkshire & the North East saw a real boost in take-up, growing almost seven times QoQ, reaching 3.4 million sq ft. This was mainly due to the completion of two large build-to-suit deals totalling 3.1 million sq ft. Meanwhile availability in the region decreased to 1.6 million sq ft at the end of Q2, a drop of 33% QoQ, with 51% of space comprising speculative units under construction. Alongside achieving record-breaking take-up volumes, the first half of the year has also seen the UK vacancy rate decline to a new low of 1.18%, illustrating the acute lack of available stock in the market. Yorkshire & the North East was the only region whose vacancy rate increased in Q2, to 1.07%, though this remains below the UK average. CBRE’s research additionally shows a wider mix of occupiers securing units in 2022 so far and a shift in take-up levels by sector. For H1 2022, third-party logistics made up the largest percentage of take-up at 27.6%, manufacturing accounted for 15%, followed by online retail at 13.6%. This is a major decrease when compared with the first half of 2021, where online retail accounted for 42% of take-up. To accommodate ongoing levels of demand, build-to-suit accounted for almost half of total take-up for H1 2022 at 46.9%, speculative followed at 33.3%, with second-hand accounting for the other 19.8%. Mike A logistics leader A logistics leader Yorkshire’s logistics schemes are in high demand. 10-13.qxp_Layout 1 04/08/2022 11:57 Page 1www.blmforum.net Business Link 11 COMMERCIAL PROPERTY 13 Á Baugh, senior director at CBRE Leeds, said: “We are pleased to see Yorkshire and North East remain at the forefront of the UK logistics take-up for H1 with the region seeing a significant increase in take-up in Q2. The increased take up during this quarter reflects the strong pipeline of deals coming to fruition, despite a quieter Q1. Furthermore, the long-term supply forecast remains positive with circa 15m sq ft coming to the Yorkshire market over the next few years.” Following on from CBRE’s newly released research, Yorkshire continues to © stock.adobe.com/ Mark Mareen © stock.adobe.com/ Maksym Yemelyanov 10-13.qxp_Layout 1 04/08/2022 11:58 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 10-13.qxp_Layout 1 04/08/2022 11:58 Page 3www.blmforum.net Business Link 13 COMMERCIAL PROPERTY be active in approving new logistics projects, announcing new deals and construction starts. Last month saw Firethorn Trust secure planning approval to deliver a 340,000 sq ft logistics scheme in South Yorkshire. The 24-acre site, Barnsley340, comprises a Grade-A warehouse unit spanning 320,000 sq ft, in addition to 20,000 sq ft of highly specified office space. The site will sit within the wider ‘Phase 2’ Gateway 36 project, a mixed-use development owned by Yorkshire-based land and property regenerators, Harworth Group plc. Constructed to net-zero carbon, Barnsley340 will be delivered to a BREEAM ‘Excellent’ rating, with renewable design features and sustainability initiatives looking to enhance cost- and energy-efficiency. Work on site will begin later this year, with practical completion due in Q2 2023. Paul Martin, development director at Firethorn Trust, says: “Now that we’ve received the green light, we’re excited to begin construction and swiftly bring our plans for the scheme to life. As the market continues to experience pent-up demand for modern logistics space, and the region benefits from ongoing inward investment, we are confident that the Firethorn specification will unlock the full potential of the site, bringing wider economic and employee benefits into the area.” Keyland Developments Ltd meanwhile, the property trading arm of Kelda Group and sister-company to Yorkshire Water, has completed the sale of its Wakefield East site in West Yorkshire to Opus North and Bridges Fund Management for an undisclosed sum. Plans for the 31-acre employment scheme, now branded ‘City Fields’, were recently submitted by Keyland, and the indicative layout proposes employment space totalling up to 500,000 sq ft, which could generate around 800 new jobs for the local area. Most of the commercial site will benefit from Class B2, B8 and E(g) consent for urban logistics, as well as industrial accommodation in a range of unit sizes, whilst also offering scope for the development of a trade © stock.adobe.com/ a_medvedkov counter scheme and associated pub/restaurant/drive-thru options. Furthermore, in a newly revealed lease for the region, Euro Pool System has signed a 10-year lease for a 10,850 sq m high-quality distribution facility at Doncaster’s iPort. P1a is the third of four speculatively developed warehouses completing at iPort this year. Dirk Vercammen of Euro Pool System said: “iPort is one of the UK’s most advanced multimodal logistics hub and industrial accommodation close to Junction 3 of the M18 and the East Coast Main Line. It provides an ideal base as a strategic location for Euro Pool System expansion in the UK to service customer needs using advanced solutions for our retail customers.” In addition to this year’s 63,000 sq m of speculative development and existing facilities for Amazon, Fellowes, CEVA, Lidl, Maritime Transport, Dusk, Kingsbury Press and Woodland Group, iPort’s remaining 158,000 sq m includes capacity for further specialist buildings up to 74,000 sq m. 10-13.qxp_Layout 1 04/08/2022 11:58 Page 414 Business Link www.blmforum.net PRINTING & PACKAGING © stock.adobe.com/ New Africa The way forward With so much focus and attention on the climate after record breaking heat waves across the region, wasteful packaging practices may soon find themselves in the crosshairs. 14-17.qxp_Layout 1 04/08/2022 12:01 Page 1www.blmforum.net Business Link 15 PRINTING & PACKAGING carrier bags, envelopes, and bubble wrap. It decomposes when exposed to sunlight. Bamboo and corn starch are emerging options within the packaging industry. Corn or potato starch from waste vegetables can be used for packing peanuts and can be used to make a durable plastic that decomposes in compost within 12 weeks. Given that they are made from waste materials, and decompose so rapidly, it means nothing is wasted to create packaging. Mushroom waste has near plastic durability, and has insulating and flame- resistant properties. It can decompose in just a few weeks. In fact, homeware giant IKEA has embraced mushroom-waste containers, showing its potential to be a packaging heavyweight. With some ideas for alternative packaging materials in mind, attention should then turn to design. If biodegradable materials are not going to be used, designing packaging for multiple functions allows it to have a life beyond its original purpose. By giving your packaging innovative and attractive designs, it allows it to be used as a keepsake. Brands such as Rituals are forerunners in this department, with wording on their packaging alluding to memories, making it perfect for storing sentimental items. Carboard boxes are easy to deliver goods, and easy to reuse beyond delivery. It is important to emphasize the design here. For customers to want to keep it, the colour should be universally appealing (pastel, or calming colours) with a simple, elegant design. This makes it more likely that the packaging will be reused. For inspiration, key brands to watch are H&M, who have conceptualised a shopping bag which converts into a clothes hanger, and Monday’s Child, who have created a box which can transform 16 Á T he climate is going haywire, pollution is increasing, and landfill sites are heaving – and many people blame packaging. The demand for extravagant, plastic-filled encasing for every product is declining, and consumers are beginning to complain if there is too much packaging on their products. With increased scrutiny on how manufacturers are impacting the planet, the trend is decidedly, and most likely, permanently, shifting towards sustainability within packaging and marketing materials. With this in mind, we seek to identify ways to shift operations towards sustainability, and the types of printing and packaging materials considered sustainable. Firstly, it is important to underline the business interests as well as the environmental benefits from making sustainable changes. Choosing environmentally friendly materials helps to future-proof businesses against depleting resources, and pressure from governments and political organisations to make changes. Furthermore, whilst it is a buzz- term, having sustainable packaging is still a relatively niche claim, so to achieve it would enable marketing towards environmentally conscious consumers. Understanding why it makes sense to shift operations, let’s focus on packaging and how to make it sustainable. Attention should first turn to the types of materials used. Recycling is one of the easiest and most well-known methods of reducing ecological footprint. Materials increasing in prevalence within packaging are cardboard, glass, and aluminium. You could go one step further and use already recycled raw materials, giving your product some extra sustainability points. This could be done through offering return schemes for customers or striking a deal with local scrap dealers. However, research suggests that recycled materials can cost an extra £57 per tonne compared to new materials. With this in mind, biodegradable materials are an excellent option. Bioplastic can make 14-17.qxp_Layout 1 04/08/2022 12:01 Page 216 Business Link www.blmforum.net PRINTING & PACKAGING © stock.adobe.com/ Li Ding into a dolls house. Embracing quirky packaging uses will cement your brand name and identity and retain customer intrigue in your products. Re-evaluating packaging design provides scope for assessing whether your product is packaged excessively. Not only does reducing the amount of packaging lower the waste generated, but it’s also more economically viable, as it lowers the cost of production by reducing the quantity used. Key to this is designing packaging to sit more closely to the products, which can create a more aesthetically pleasing design for those who appreciate minimalist aesthetics. This creates a better impression for customers, as it is an outward expression of commitment to sustainability whilst still giving an eye-catching impression, perfect for Instagram unboxings. A perfect example of this is Amazon’s Frustration-Free Packaging, which only uses a perfectly sized Amazon box, not the products’ own packaging. Frustration-Free Packaging is plastic free, without clamshells or wire ties. Ultimately, sustainable packaging will likely become a necessary investment for any business, given growing consumer dissent at excess, and pressure from governments to hit carbon neutral targets. Turning to these solutions now will mean businesses don’t have to do an about-turn later and helps to promote a forward-thinking image for the company. To market your newly sustainable packaging, thoughts may © stock.adobe.com/ Vera NewSib 14-17.qxp_Layout 1 04/08/2022 12:01 Page 3www.blmforum.net Business Link 17 PRINTING & PACKAGING turn to printing and how this could be achieved sustainably. To understand how this can be achieved, Quality Press provides some excellent guidelines for evaluating sustainability in printing. They utilise compute to plate (ctP) technology, wherein, an image created in a Desktop Publishing application is output directly to a printing plate. This eliminates the need for disposable films and toxic developing chemicals, which decreases environmental impact. An easy change is to switch to recycled paper or ensure that it is sourced from sustainably accredited forests. Recycled paper is also generally less expensive than virgin paper. As another low-cost option, businesses could adopt vegetable-based ink, in place of mineral solvent-based inks, which emit greenhouse gasses. Vegetable-based inks are also derived from renewable sources, making them entirely sustainable. Sustainability is a growing concern for consumers, and businesses will eventually need to adopt more sustainable processes, even if it’s just to secure company survival by counteracting depleting resources. Some of the suggestions given above can be implemented at low cost, such as re-assessing packaging design and switching to sustainable inks and printing methods. Some changes will be an investment – procuring and implementing more innovative packaging materials will require research and development investment to make them work for your business, but the benefits will outweigh the costs. After all, research suggests that eco friendly packaging can increase sales by approximately a third. 14-17.qxp_Layout 1 04/08/2022 12:01 Page 418 Business Link www.blmforum.net BUSINESS SERVICES B usiness models have changed drastically since the end of the lockdown, with increased digitalisation, a need for agility, and remote and hybrid working models becoming commonplace even though mandated working from home has now ended. This flexibility has seen many companies adapting hybrid models and capitalising on the lower overheads of running a busy office. As a result, optimism has been building in the diverse business and professional services sector; a sector that provides 5.5 million jobs across the UK. Employment showed signs of improvement too with business and professional services seeing the fastest growth in five years. However, the recent tumultuous economy and the difficulties faced by the Government haven’t helped any, and with the cost of living rising to new levels and the Conservatives paralysed by their own internal leadership struggles, the problem has neither been addressed nor handled. There are further challenges for the sector, with a severe skills shortage hitting business and professional services and a clear need for more investment in learning and development. Indeed, nearly one third of employers are finding it difficult to recruit because of skills shortages that have been heightened by the pandemic, with roles in data and technology being left open in particular. According to a report from the Professional & Business Services Council and the Financial Services Skills Commission, ‘Skills for Future Success’, skills shortages have been accelerated by the pandemic, with automation, digitisation, globalisation, and changing workforce demographics contributing Unpredictable times Business service has never been more complicated with skills shortages, rapid digitisation and ever dwindling pools of recruitment due to Brexit. While the challenges are great, those who achieve them may well reap the rewards. 20 Á 18-21.qxp_Layout 1 04/08/2022 12:03 Page 1www.blmforum.net Business Link 19 BUSINESS SERVICES © stock.adobe.com/REDPIXEL 18-21.qxp_Layout 1 04/08/2022 12:03 Page 2Next >