Why less square footage can mean more scale with reduced costs…
Rising property rates are forcing many businesses to re-evaluate their physical footprint. The smartest are realising downsizing doesn’t have to mean reducing capacity. In fact, a leaner workspace often unlocks significant tax relief without sacrificing operational scale. By focusing on volume over area, you can upsize your operational efficiency while cutting overheads.
Volume Advantage of New Builds
Merchant Park Unit 1 is a flagship 53,093 sq ft unit on Aycliffe Business Park that fits this criteria. While it may have a smaller footprint than older industrial units in the area, its 12-metre eaves height transforms its storage potential with the right pallet configuration.
- Pallet Density: In a 12m-high building like Unit 1, utilising a Very Narrow Aisle (VNA) configuration allows you to jump from 6,732 to 8,624 pallets on the exact same footprint.
- The Gain: That is 1,892 additional pallet positions—a nearly 30% increase in capacity—without adding a single square metre to your rates bill.
The illustration below demonstrates the pallet potential of Merchant Park Unit 1 compared to smaller, older sites with the same sq ft footprint.
By moving from a traditional older building with 6-metre eaves to a modern 53,093 sq ft, 12-metre eaves facility like Merchant Park Unit 1, you are effectively doubling your capacity. Where the initial up-front cost to acquire to a premium new build may be slightly higher at the outset, the operational and rates costs come in much lower meaning it is a cheaper option for the long term. Plus, choosing a smaller, smarter footprint like Merchant Park Unit 1 can significantly reduce your rates bill by a third compared to a larger, older building. This is because business rates are calculated on square footage and not volume. With Merchant Park Unit 1 you can achieve 8,624 pallet capacity while paying the rates bill of a much smaller unit.
New v Old
While the “up-front” rent for a new build might carry a premium, the long-term operational savings are significant.
| Feature | Older, Larger Units | Merchant Park Unit 1 (New Build) |
| Maintenance | Frequent, unpredictable repairs | Minimal; built to modern standards |
| Heating | Often fossil-fuel reliant and inefficient | Fossil-free heating systems |
| Sustainability | Low EPC ratings; high carbon footprint | Green credentials; lower energy costs, BREEAM Very Good and EPC A |
| Storage | Limited by low eaves | Maxed volume with VNA & racking potential |
Merchant Park Unit 1 is located on Millennium Way on Aycliffe Business Park. To find out more and arrange a viewing please contact the letting agents Dave Cato from CBRE dave.cato@cbre.co.uk and Jonathan Simpson at Connect Property jonathan@cpne.co.uk