Grade A big box warehouse space is at a premium in Scotland, and smart-thinking logistics companies are turning to mezzanines to solve the problem.
Without a ready supply of high-quality large premises, they are opting for smaller Grade A units and using mezzanines to give themselves extra capacity.
Installing a mezzanine allows expanding businesses to make maximum use of their vertical space without the costs and inconvenience of looking for a bigger site.
According to a Savills Big Shed Briefing, the supply of warehouse space in Scotland for units over 100,000 sq. ft saw an 11% decline in the first half of 2024. Take-up was 100% for Grade A space and with no Grade A supply available, many occupiers are having to settle for smaller warehouses.
Ross Sinclair, Savills Director in Glasgow, said: “Recent surges in demand for industrial and logistics properties in the Scottish Central Belt suggest an uptick in activity in the second half of 2024. However, several barriers to growth exist. Occupiers are increasingly seeking top-quality stock, and the shortage of Grade A big box facilities is pushing them towards properties under 100,000 sq. ft, a segment that has performed well.”
Cost-effective solution
Mezzanines are the cost-effective solution for companies seeking extra space for storage, offices or robotics.
At Hi-Level Mezzanines we have worked on sites in Glasgow, Edinburgh, Dundee and Aberdeen with ambitious businesses in a variety of industries including food production, building material suppliers, technology, automotive and e-commerce retailers.
We understand the certification process required with SER registered structural engineers when it comes to certifying structural design for building warrant applications, and the specific staircase compliance regulations in place in Scotland. We have the experience needed to deliver any project.
Superb transport hubs
Scotland has outstanding transport hubs, facilitating logistics and supply-chain operations with first-class links to regions across the UK and around the world.
- Aberdeen Harbour is one of Europe’s leading marine support centres for offshore energy. It handles around 6,500 vessel arrivals and four million tonnes of cargo, valued at approximately £1.5 billion, annually.
- Edinburgh Airport is the UK’s 6th busiest airport and carries the most freight in Scotland. It is located five miles west of Edinburgh city centre close to the M8 and M9 motorways. Glasgow International Airport is one of the main air cargo hubs in Scotland, handling a wide range of freight including pharmaceuticals, electronics, perishable goods and textiles. It has direct airfreight connections to major global markets, including Europe, North America and the Middle East.
- Eurocentral is Scotland’s largest commercial site extending 650 acres and situated just off the M8 motorway between Glasgow and Edinburgh. Current tenants include logistics companies XPO Logistics, DX and Wincanton, and retailers Lidl, Morrisons, Next and Amazon. It is also the site of the Eurofreight rail terminal, and nearby Maxim Park is the UK’s largest speculative office park development.
- The port of Greenock, Scotland’s only deep water container port, has invested £750,000 to expand its refrigerated cargo infrastructure, increasing the number of reefer points from 32 to 220 and vastly enhancing its capacity to store and distribute perishable goods. Jim McSporran, port director at Peel Ports Clydeport, told Logistics Manager: “This significant investment underscores our commitment to providing world-class facilities.”
- Forth Ports owns and operates seven commercial ports on the Firth of Forth and the Firth of Tay. Over 50% of Scotland’s GDP in goods goes along these rivers, such as oil and gas, food and drink, agriculture, tourism, manufacturing and renewable energy.
- Freightliner’s Coatbridge Terminal handles the majority of rail freight in Scotland at a 20-acre site located on the Motherwell-to-Inverness mainline and situated between Edinburgh and Glasgow.
With such good transport links it is no surprise that forward-looking companies are expanding in Scotland.
Continued growth
In a deal dubbed “one of Scotland’s largest industrial transactions in the past year”, Wincanton has agreed a 15-year lease for a new 126,960 sq. ft unit in North Lanarkshire. The logistics company says the move represents its “continued growth and commitment to Scotland” after it opened a 153,000 sq. ft Scottish Gateway hub just six miles away in Motherwell in April 2023. It says the new site will “cater to the demands of an expanding client base, underlining Wincanton’s dedication to enhancing operational efficiencies and service capabilities nationwide.”
Electric car brand Polestar has opened a permanent home in the heart of Glasgow in what it claims will “redefine the automotive shopping experience.” The Swedish firm says its new premises, “The Polestar Space”, will champion a “direct-to-consumer, digital-first approach” with minimalist design and seamless digital interactivity. Located in the Silverburn Shopping Centre, the space is reportedly the first of its kind in Scotland.
While Glasgow’s economy is rooted in traditional sectors such as banking, professional services, insurance and finance, emerging sectors are driving innovation and giving the city a new renown for creativity and technology. These health-tech, precision medicine, net-zero/climate technologies, space, fintech, advanced manufacturing, digital and creative businesses are expected to escalate demand for office and manufacturing space ahead.
Again, installing a mezzanine is the smart way to increase capacity by making optimum use of headroom in your current premises when a bigger location is hard to find or hard to afford.
Contact us today to find out how we can help your business find the space it needs.
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