property development Archives

Unlocking Millions via Small to Mid-box Developers

Posted on 17 November, 202331 July, 2025 by David Priestman

Jason Rockett (pictured), managing director of industrial and logistics property company, Potter Space, shares his view on the small to mid-box (sub-100k sq. ft.) property market in light of the company’s new research report, ‘BIG Things in SMALL Boxes’, conducted in collaboration with Savills.

An increasing lack of land is blocking growth for businesses in the small to mid-box (sub 100k sq. ft.) warehousing sector, our latest report has revealed. The stagnation in development has been shown to be holding back job creation and is costing the economy £480 million in Gross Value Added (GVA) per year.

The second edition of our annual industry benchmarking report, BIG things in SMALL boxes, commissioned in collaboration with Savills, aims to lift the lid on the challenges faced by the small to mid-box segment of the market and highlight potential solutions.

It has revealed that the biggest challenge facing the small to mid-box logistics property sector is that of ‘suppressed demand’. This is where demand for space far outstrips the supply of units and land available, with the average figure of suppressed demand currently at 38 per cent across England. It is this lack of supply that is stifling growth in the I&L sector with a significant loss of opportunity for the UK economy.

Among the worst affected areas are Nottingham and Derbyshire (51 per cent), Birmingham (57 per cent) and Leicestershire (101 per cent). While the Midlands is undoubtably an area of focus for the industry, being home to the logistics ‘Golden Triangle’, there are also improvements to be made in areas such as Stoke and Stafford, where suppressed demand currently sits at 50 per cent, and Crawley in the South East, where demand has been suppressed by 166 per cent.

The growing need for space within the small to mid-box sector is undeniable, but there are numerous barriers to the rapid increase of development of smaller premises, often due to decisions made by local planning authorities to provide land to big-box schemes and residential developments. Change is needed now to unlock the supressed demand across the sector and ensure that it continues to grow – generating jobs and wealth for local communities.

To combat these issues, there needs to be a coordinated approach from Government and local authorities to identify opportunities for small to mid-box development alongside other sectors. This will lead to an opportunity for collaboration between a mix of developers.

Co-location of small box schemes alongside big box is a large part of the solution. The responsibility for making this happen lies with local authorities who must think outside the box and seek to understand the benefits that mixed schemes can offer to local economies, workforces, businesses and consumers. Local authorities should take a positive approach to planning to unlock economic benefits and local planners should consider land that is unsuited to bigger warehouses as opportunities for smaller facilities, including areas close to residential developments, beside motorway junctions or railway tracks. Collaboration is key to ensuring that millions of pounds in GVA is unlocked.

Modern Warehouse Space Meets Local Demand

Posted on 16 August, 2023 by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers and a Blackstone portfolio company, has announced today that two local businesses have committed to a total of 62,000 sq.ft of modern warehouse space at St. Modwen Park Broomhall in Worcester, significantly expanding their operations in the area.

OBEX Protection, which manufactures and distributes protective construction solutions, has agreed to lease 47,000 sq.ft at the Park. OBEX, which will retain a 27,000 sq.ft base of operations at St. Modwen’s nearby Nunnery Park scheme, is taking this additional space to increase its manufacturing and distribution operations in response to a rapid growth in demand for its products in recent years.

Automotive and tech distribution company Nemesis is also following suit and will almost double its footprint with St. Modwen by signing for 15,000 sq ft of space at SMP Broomhall whilst retaining its 19,000 sq ft unit at Nunnery Way.

Planning permission for the third and final phase of development has also been secured with the construction of two units – 40,000 sq.ft and 32,000 sq.ft – set to begin later this summer. The development will create 95 jobs across a diverse range of employment types and has been supported by local employment groups including Worcestershire Education Business Partnership and the LEP Skills team.

Situated on the southern outskirts of Worcester, St. Modwen Park Broomhall is located just one mile from Junction 7 of the M5, which provides easy access to the wider Midlands, the South West and South Wales, as well as the wider national infrastructure networks. The Park benefits from a strong workforce catchment located within five miles of the site and has been delivered in line with St. Modwen’s ‘Swan Standard’ of sustainable development, benefiting from an EPC A rating and EV car charging provision, and achieving net zero embedded carbon.

Peter Davies, Development Director at St. Modwen Logistics, commented: “Supporting customers and helping them to grow is the cornerstone of our business and so we were naturally delighted when both OBEX and Nemesis asked us to support them again with their expansions. It’s fantastic to see two local businesses growing in this way, and even better that they are able to remain in the local area as a result of our development at St. Modwen Park Broomhall.

Rob Francis, Director, OBEX Protection, said: “Following a period of rapid growth, we are excited to announce an expansion into a new 47,000 sq.ft unit which will provide crucial support for our operations. It was important for us to remain in Worcester where the company was founded and having worked closely with St. Modwen since July 2020 we had no hesitations about agreeing a deal to move in to St. Modwen Park Broomhall.”

Chris Chance, CEO at Nemesis, added: “There is a dearth of modern, high-quality warehouse space in the area that supports our long-term sustainability goals. We are very pleased to a have secured new premises at Broomhall which will allow us to maintain our trajectory and attract the staff we need.”

St. Modwen is a property developer owned by Blackstone focused on logistics and housebuilding. St. Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises.

Sustainable Warehouses at St. Modwen Park Lincoln

Posted on 16 June, 20237 August, 2025 by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics developers and managers and a Blackstone portfolio company, has completed work on a £15m 111,000 sq ft sustainable warehouse, as part of the fourth phase of development at St. Modwen Park Lincoln, UK, which could save occupiers more than £90,000 a year in operational energy costs.

Delivered by Caddick Construction, Lincoln 111 becomes the biggest unit at the site, demonstrating St. Modwen’s confidence in the Lincoln and Newark region following the success of the Park since the first unit was completed back in 2019. In total, St. Modwen Logistics has invested £35m to deliver 411,000sq ft of space at the Park in this period, with the likes of logistics giant DHL, retailer Furniture Village and international ice cream distributor NIC all occupying space at St. Modwen Park Lincoln.

Built to St. Modwen Logistics’ ‘Swan Standard’ guidelines for sustainable construction, Lincoln 111 is rated ‘Excellent’ by sustainability certification body BREEAM and comes complete with more than 1,000 sq m of solar PV panels installed as standard to help prospective occupiers to meet their own ESG targets.

Energy generated from these panels will fully power the building’s 5,300 sq ft of Grade-A offices, making them net zero carbon in operation. Combined with other energy-efficient features which are incorporated in the design process, Lincoln 111 has been awarded an EPC A+ rating, helping occupiers to reduce their operational costs. The building also has access to an increased power supply, making it perfect for occupiers with large power requirements.

Located on the A46 dual carriageway between Lincoln and Newark, St. Modwen Park Lincoln benefits from its fantastic location and transport links and is just seven miles from the A1 with direct access available. In addition, customers at the Park also benefit from central Government investment into infrastructure improvements to the A46 Newark bypass and the completion of the Lincoln bypass, resulting in reduced travel time to the South West and North East towards the Humber Freeports.

Reserved matters planning consent has also been achieved for the fifth and final phase of development which will see the capacity of the Park total 740,000 sq ft in the coming years. There is a unique opportunity for the final development to be accelerated to meet the specific requirements of a business in need of a build-to-suit option, with St. Modwen Logistics able to deliver a single unit up to 350,000 sq ft available within 12 months.

Ben Silcock, Leasing & Development Manager, St. Modwen Logistics, said: “We are always striving to develop industry-leading warehouses in fantastic locations for our customers and Lincoln 111 is a prime example of this. As well as being near to the vital A1 interchange and benefitting from crucial infrastructure works in the region of late, the building is also best-in-class when it comes to both the quality of the development and its sustainability credentials. With extra power capabilities and reduced operational costs thanks to the installation of solar PV panels, it would be the perfect home for any businesses looking to expand their operation to the East Midlands or upgrade to a highly-efficient building.”

Dominic Towler, Surveyor at Cushman & Wakefield, added: “Lincoln 111 is the largest speculatively built unit available within a 20-mile radius and adds much-needed supply to the area. The building’s sustainable design also offers exceptional cost savings for occupiers looking to relocate from less efficient and inferior stock. Phases 1 to 3 have demonstrated that demand for space in the area is buoyant with both local and national occupiers taking units within the Park, and we again expect the unit to be of significant interest to similar occupiers.”

Lincoln 111 features eight loading docks, two level access doors and 12.5m of clear internal height, as well as 48m yard depth. In addition, 20% of the building’s car parking spaces will have EV car charging points installed and the Park offers a provision of cycle spaces, encouraging greener travel amongst employees.

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