Shed of the Month: Gathering Momentum

By Liza Helps, Property Editor ,Logistics Matters

• Unit 4 Momentum Logistics Park, Coldharbour Lane, Rainham RM13 9PJ
• Developer: HBD
• Strategic Funding Partner: Barings
• Letting Agents: CBRE, Glenny, DTRE
• Unit Size: 171,406 ft2 
• Development size: 388,300338 ft2
• Total nos of units: 4 from 41,126 to 171,406 ft2

Occupiers could be forgiven for dismissing the scheme - the four buildings which make up the 20-acre Momentum Logistics Park, while handsome, are situated in a somewhat incongruous location, stuck behind a Veolia land fill site along what seems like a long forgotten municipal roadway. But after my tour of the site, I would say that would be short-sighted.

The scheme was extremely easy to find and is just a few miles from Junction 30 of the M25 motorway. The A13 from which the scheme is accessed via Coldharbour Lane provides access into the heart of the East End and City going west, while going east takes you to Tilbury Docks and DP World’s London Gateway port.

But it is not its accessibility that stands out, despite the landfill site – which is due to be capped off and returned to public use as part of ‘wildspace conservation park’  - the main USP of the scheme has to be its location and the stunning vistas across and up and down the majestic River Thames.

On the gloriously sunny day I visited, the views were simply breath-taking. If we are just talking ‘Wellness’ this has to be one of the top locations and HBD and Barings have deliberately designed these buildings  to maximise the impact. The Grade A offices all have river facing views. The office space in Unit 4 even has a first floor balcony area looking up the Thames towards London from which to view the never ending cavalcade of river activity. 

The link between the indoors and outdoors is further served by picnic  areas  at ground level and paths around the buildings  on the Rover side aspect linking via  monitored security gates straight onto the National Cycle Network Route 13, which when complete, will connect Tower Bridge in London with Fakenham in Norfolk.

As part of its move to increase BNG on site the developers have again designed carefully and planted boxes coupled with a 100% increase in hedges and other greenery, along with landscape buffers to protect wildlife and nurture biodiversity giving an 86% increase in natural habitat.

Its not just outside that the theme of wellness pervades, inside the properties boast a range of amenities including quiet rooms and shower facilities.

As one would expect of any modern warehouse development coming out the ground today, the buildings themselves are also highly specified and hit BREEAM Excellent and an EPC A+ rating. They are 100% electric buildings by design and as well as being built net zero carbon in construction have the capacity to be net zero carbon in operation as well.

Walking inside Unit 4, the largest of the buildings on the development, the 18m eaves height makes itself apparent - there is simply a lot of volumetric space available. Having the office space in effect in a separate building alongside the actual warehouse with the eight dock and eight level access doors along the opposite side, leading to a 50m yard, means that the full width, depth and  height of the space within the perfectly rectangular warehouse (84.6m x 164.5m) can be utilised. 

Perhaps one of the most interesting  aspects of the scheme is that it also has access to Coldharbour Jetty. Technically this would allow occupiers a river route into the heart of central London. River logistics is an as yet untapped resource but there is merit in looking at aggregate movement along the route for Central London development rather than using HGVs to navigate their way across town.

According to the most up-to-date research by Glenny the availability rate in East London now stands at 5.97%, above the long run average of 5%. While this certinaly looks like a swing from landlord dominance, Glenny noted that demand is increasing. Indeed Savills’ requirements index for units over 100,000 ft2 rose by 108% quarter-on-quarter within the Inner M25, and 41.7% for the wider South East area. This suggests a stronger outlook for transactional activity throughout 2025.

Couple this with Montagu Evans’ report that noted that construction levels are falling and sites coming forward are in  short supply, and the indication is that vacancy rates will tighten once again leaving occupiers scrambling for choice by 2026/27.

Savills reckons that there is less than two years worth of supply in the 100,000–200,000 sq ft range in the Eastern (A13/A12) corridors based on average take-up.

Quoting rents in the region are around £21 per ft2 though some are indicating that there is little justification for rents that high. Be that as it may, developers are unlikely to sacrifice headline rents levels with viability issues prevalent in terms of construction costs, land prices etc however, there is a general consensus that wider lease incentives can be negotiated for the right occupier. This however, will be relatively short-lived as take up continues, new development starts remain scarce and supply diminishes.