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UK INDUSTRIAL & LOGISTICS MARKET BAROMETER

UK take-up of units over 100,000 sq ft exceeded 30 million sq ft in 2016, 14% above the 2015 levels, as demand continues to outstrip supply for the third year in a row.

 

The growth in e-commerce continues to generate unprecedented levels of demand for logistics space, with retail now accounting for 57% of all big sheds take-up.

 

Speculative development is expected to fall by 65% in 2017, resulting in less choice for potential occupiers.

 

The lack of accessible land in high population areas already presents challenges to finding suitable facilities for last-mile deliveries. In many cases design & build is the only way to guarantee the right product In the current uncertainty in the commercial property market, the industrial market is forecast to perform better than the other major property sectors in 2017, with annualised rental growth of 2.5% in the next five years.

 

Positive outlook for the sector is fuelled by a shortage of quality product and strong demand, with the latter supported by rising online retail sales and an export-friendly exchange rate.

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