Skip Ribbon Commands
Skip to main content

News Release

Newcastle

Logistics and Distribution parks are thriving thanks to the region’s strong manufacturing base

according to Simon Hill of Jones Lang LaSalle


Newcastle - 29 May 2012 - Within the North East property market logistics and distribution parks play a different role to that of other regions in the UK. Whilst in other parts of the country such as the South East, the Midlands and the North West they have grown around major motorway intersections,the development of logistics and distribution in the North East has tended to be more piecemeal says Simon Hill, Director of Agency at Jones Lang LaSalle’s Newcastle office

The most recent example of this is Clipper Logistics who will occupy a new 343,000sqft cross-dock warehouse at Teeslink on Wynyard Park, Stockton-on-Tees.  The unit will initially serve Clipper’s George at Asda contract with additional space being used to accommodate other shared use customers.  The location at Wynyard suited Clipper due to its close proximity to Teesport where George at Asda already has a warehouse facility within the port itself.  Also on Teesport, Tesco has a one million sqft warehouse which is their major warehousing facility for non-food goods in the UK.  Therefore, whilst not a specific logistics park, close proximity to Teesport has led to the development of a cluster of distribution facilities.

This cluster pattern of distribution can be seen in other parts of the region.  For instance, around Junctions 58 and 59 of the A1(M),Aldi, Lidl and Argos all have major warehousing facilities.  Whilst along the A1231, which links the A19 and the A1(M) at Washington, Asda has a number of warehouse facilities in addition to a number of companies which form part of the expanding Nissan supply chain.
The reason for this cluster effect throughout the region is not specific to the distribution market but is more a reflection of the continuing strength in the manufacturing base within the region, which has meant that distribution uses have grown up alongside established manufacturing and general industrial uses throughout the North East.

The North East has all the ingredients to attract major distribution investment into the region having a good supply of quality competitively priced land, cheap labour, and excellent road, rail and air links, as well as access to the fastest growing ports in the country.  It is for this reason that the region will continue to be a popular distribution location.  However, due to the unique nature of the overall market, the growth of specific logistics and distribution parks will be limited as the tendency for logistics and manufacturing to sit side-by-side will continue to be the dominanttrend in the North East.
 
We envisage that over time the retail sector will continue to invest in new logistic facilities in the North East especially centred around thetwo main arterial routes, the A1 and the A19, and the North East ports but also a wider distribution network will grow from the supply chain to some of the major manufacturing companies who are based in the region. ​