Industrial and office demand in London and South East soars
The negotiations over Britain’s exit from the European Union have failed to dampen demand for industrial and office floor space across the eastern half of the M25 region.
After an early slowdown towards the beginning of the year, demand for industrial floor space in London and the South East recovered strongly in Q2 and Q3 of 2017, reaching almost peak levels of 14.9m sq ft – on par with demand levels of 15.3m sq ft recorded in Q3 2016.
The industrial sector has seen prime and secondary rents increase by 8.5% and 10% over the past 12 months, while 50% of locations across London and the South East now have values in excess of £10.00 per sq ft.
Office requirements have also remained strong across the London and South East region, particularly in the burgeoning Stratford and East London markets, where prime rents have risen by 92% since 2014 in response to increased demand.