Why size and specification matter for M40 occupiers

Large logistics schemes attract plenty of attention along the M40, but smaller industrial, manufacturing and technology buildings are just as important to the businesses operating across the corridor.

Drive through Oxfordshire and it is easy to assume that industrial development is all about scale. Around Bicester and Banbury, major schemes such as Link 9, Cabot Park, Axis and Catalyst are bringing forward large areas of warehouse and production space and attracting significant occupiers.

At Bicester, construction is under way on two speculative units of approximately 156,000 sq ft and 115,000 sq ft at Symmetry Park, with completion targeted for early 2027. Nearby, Siemens Healthineers' approximately 600,000 sq ft production facility demonstrates the scale that can be accommodated on a strategic site.

But not every business needs a building of that size.

Companies within these wider supply chains may need a modern workshop, a flexible manufacturing unit, space for research and development, or simply enough room to expand without taking on a large logistics building.

This is a particular issue in the local market. Cherwell District Council's emerging local-plan evidence identifies strong demand for smaller employment units in Banbury, following a period when much of the new development has been focused on larger logistics and warehouse buildings.

There is therefore a balance to be found. Large developments can make commercial sense because infrastructure and other costs can be spread across a greater area of floorspace, while a single large occupier or pre-let can provide greater certainty for a developer. Smaller schemes can be more complicated and expensive to deliver on a per-square-foot basis.

That does not mean there is no demand for smaller buildings. It means the economics of delivering them need to work.

There are encouraging examples of smaller-scale development along the corridor.

At Greatworth Park, between Silverstone and Banbury, Units 14 and 15 provide approximately 4,346 sq ft and 6,969 sq ft respectively, or around 11,315 sq ft combined. The new units have 7m clear eaves, loading doors and fibre connectivity, providing space for engineering, manufacturing and other smaller businesses.

The virtual freehold option also gives owner-occupiers the opportunity to acquire premises they can control over the longer term.

At Buckingham 40, Deeley Group is developing a 40,623 sq ft industrial and warehouse building on Osier Way, with completion targeted for spring 2027. The building is designed to provide a combination of warehouse and office space, with a 10m clear height, dock and level-access loading and 43 parking spaces.

Further south, Cabot Park in Bicester demonstrates how mid-sized accommodation can work where the location and occupier market are right. The development includes buildings ranging from approximately 19,000 to 51,000 sq ft, with offices, service yards, EV charging and photovoltaic panels.

The range of occupiers illustrates the flexibility of this type of space. Mercedes, Fortescue, Salunda and Dole have all chosen the development, despite having very different operational requirements.

Silverstone Park provides another example, particularly for specialist engineering and R&D businesses. Its Evolve East development includes eight hybrid industrial and research and development units. Precision engineering business Alitech has taken approximately 15,000 sq ft, while other units are let or under offer. A further Evolve West phase is proposed, with four detached units ranging from approximately 31,500 to 62,900 sq ft.

For an occupier, the decision is not always simply about choosing the lowest rent or purchase price.

An older industrial unit may initially appear cheaper, but it could require investment in the roof, insulation, power, lighting, loading arrangements, offices or layout before it is suitable for the business. There is also the potential cost of delaying occupation while those works are carried out.

A new building will generally command a higher price, but much of the required specification is already in place. Clear height, floor loading, modern services and an efficient yard layout can all affect how effectively a business uses its premises.

This is where whole-life cost becomes important.

The right comparison is not simply the rent or purchase price. An occupier should consider the total cost over the period it expects to occupy the building, including fit-out, energy, repairs, maintenance, potential upgrades and the effect the building has on the efficiency of the operation.

That does not mean new is always better. A well-located second-hand building can represent excellent value if it already suits the business or can be adapted without excessive cost.

The next generation of development along the M40 may not always look like a conventional warehouse.

At Bicester Arc, a 48-acre development site is being promoted for offices, laboratories, technology and hybrid accommodation, with planning capacity of more than 600,000 sq ft. The site could provide smaller standalone buildings as well as larger bespoke facilities, with potential applications including research, prototyping and advanced manufacturing.

It is another indication of how varied the requirements of businesses along the M40 are becoming.

The corridor needs large logistics buildings for major distributors, but it also needs premises where manufacturers, engineers and technology businesses can start, grow and develop.

For occupiers, the right building is not necessarily the biggest or newest. It is the one that works for the business, both today and over the life of the occupation.

For developers, the challenge is making that building viable to deliver.