UK INDUSTRIAL & LOGISTICS MONTHLY SNAPSHOT
This is an overview of the ‘big box’ sector specifically focussing on warehouses in excess of 100,000 sq ft and an eaves clearance of 10 metres. It highlights total take-up by region, construction projects, availability, and key occupational and investment deals to date in 2017.
• E-commerce and retail continue to drive take-up, occupying over 50% of the let space.
• The East and West Midlands, as well as the South East have been the most active regions for take-up over the past 12 months.
• Current available supply of Grade A buildings is at 6 months based on the current take-up rate and 21 months for second hand units.
The industrial and logistics sector has remained remarkably resilient across the UK in the face of wider economic uncertainty. The past year has been a record in terms of occupier demand for modern warehousing. With availability of supply continuing to be constrained we anticipate that pressure on rental levels will be increased, principally due to ongoing requirements from the online retailers.