Booming industrial sector becoming more diverse (CoStar)
The UK industrial sector saw record investment volumes of £10.7bn in 2017 and accounting for 17% of all commercial property transactions.
However, GVA said as industrial's position in the investment market continues to grow, the occupier demand that underpins the sector was "far more diverse than the previous year, when overwhelming demand from internet retailers led to a record 27.5m sq ft of take-up in 2016".
In its latest Industrial Intelligence research bulletin, GVA reports that take-up of modern and new units over 100,000 sq ft totalled 20.6m sq ft.
This was unsurprisingly below last year’s record level, but close to the 10 year average of 21.1m sq ft.
Primary demand in this sector came from non-internet retail operators, which accounted for 28% of take-up and included significant lettings to Lidl at Gateway Peterborough and H&M at Magna Park, Milton Keynes.
The manufacturing sector also benefitted from a weaker pound boosting export markets, leading it to comprise 25% of take-up, while third party logistics was supported by Eddie Stobart agreeing 1.7m sq ft of space in five deals, mainly close to the golden triangle, to account for 24% of take-up.