DEMAND for warehouse space on Teesside is strong, despite the economic slowdown, according to property consultancy, Sanderson Weatherall, which has finalised two of the region’s largest warehousing deals this year.

The firm’s Teesside office brokered deals in which more than 170,000 sq ft of warehousing space has been taken up in the last two months.

PD Logistics has moved into the 125,000 sq ft Stephen House on Tofts Farm Industrial Estate, Hartlepool, to complement existing operations in the region. And Toys Direct, the Stokesley-based mail order company, has acquired a 46,000 sq ft warehouse at Teesside Industrial Estate in Thornaby.

Jonathan Simpson, associate at Sanderson Weatherall, said they were the two biggest warehousing deals of the year so far, confirming that highly-competitive pricing, excellent location and good transport links was keeping demand for warehouse space in the area high.

He said: “Warehousing activity continues to boom.

A number of third-party contractors are looking for warehousing solutions, particularly between 50,000 and 100,000 sq ft.

“Owing to the very competitive rates available and a good location, warehousing has probably been the best-performing sector in the region in the past few months.

“When you factor in the favourable local operational costs of property and excellent transport networks, it makes Teesside very attractive for logistics operators.”