Third-Party Logistics Drives Thriving Property Sector in UK
30th October 2017
CBRE UK has released its latest Monthly Industrial & Logistics Market 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. Key highlights include total take-up by region, construction projects, availability, and key occupational and investment deals to date in 2017.
• Take-up in Q3 2017 was 2.46m sq ft across 11 buildings (eight Grade A and three Second Hand). This compares to 2.74m sq ft in Q2
• The take-up of online retailers in relation to other users has fallen over the past three months although still accounts for 20% of take-up over the past 12 months.
• There is currently 8.97m sq ft of available Grade A space representing eight months supply. Over 50% of available Grade A space is in the Midlands.
Jonathan Compton, Head of Industrial & Logistics Strategy at CBRE comments:
“Industrial and logistics continues to thrive in 2017. There is still a high demand for space, particularly in the Midlands, where take-up over the past twelve months has reached nearly ten million square feet. Much of the demand has been driven by third party logistics, and despite a slight slowdown in demand from online retailers, we expect this sector will continue to drive growth for the rest of the year. We anticipate a strong final quarter to the year with the completion of a number of prospective lettings.”