Self-Delivered New Distribution Centres

Developing new warehouse sites is imperative to meet the demand for more space in the right locations. David Priestman met with FIREM’s Senior Development Manager, Emily Armstrong, to learn how this developer manages the process.

FI Real Estate Management (FIREM) are a British commercial property and asset management company that works with tenant customers to identify and deliver flexible premises. Since 2019 the company has developed existing land it owned to self-deliver new warehousing, rather than just being a construction business. “It’s so much quicker,” Armstrong tells me. “Construction costs are stabilizing now, so we’re better able to manage costs as we have our own construction division.” Armstrong explains that FIREM can provide a one-stop-shop for development as it has in-house assets and a facilities team, “but we also use agents for bigger sites.”

FIREM’s occupier customers are often regionally-based businesses in the UK, including third party logistics operators, as well as local manufacturing or food production firms. It’s portfolio includes the £220m Botany Bay Business Park development beside a canal in Chorley, Lancashire, spanning 37 acres combining large DCs and small multi-let units, where the company is head-quartered.
FIREM has an impressive portfolio of logistics and warehousing real estate assets stretching from London to Hull, Watford to Wrexham, Peterborough to Peterlee, Coventry to Caernarfon, Basildon to Barnsley, Newcastle to Northwich, and everywhere in between: Stanworth, near Chorley and with 2 warehouse units suited to ‘Big-Box’ retail or ecommerce tenants; Wrexham in North Wales (pictured), a build-to-suit opportunity; Bredbury in Greater Manchester; Drayton Manor business park (pictured) in the Midlands; Hay Hall in Birmingham; and Gateway 100 in Merseyside.

High Standards

ESG and sustainability is a big issue in property development, with EV charging and BREEAM certification standards necessities. “We consider what specifications will be like in a few years,” Armstrong adds, “so we can estimate customer expectations in advance.” Design is not done in-house. “We use architects and consultants, as well as BREEAM engineers,” she informs. “We have a standard now but each unit has its quirks. We also undertake refurbishments.”

I asked Armstrong what the market is like at the moment, in terms of supply of and demand for space. “Demand is good,” she states, “Botany Bay is flying, the location of some sites is trickier. Where our land stock is older we purely plan, develop, lease and keep hold of it (rather than sell). Multi-let estates are doing well in North West England.”

Build to suit

FIREM self-delivers sites, offering bespoke solutions. “Existing sites are built-to-suit, but still need planning consent, especially around green belt areas. There’s been a slow down in speculative development and we’re mainly doing pre-lets. We’re targeting fulfilment, retail, start-ups and B8 logistics (storage and distribution) customers,” Armstrong concludes.

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