Prime Logistics Bulletin: Q1 2019

Prime Logistics is an essential tool for any developer, investor or occupier interested in the market for logistics buildings over 50,000 sq ft in size across each of the UK’s 26 key distribution markets.

Key findings this quarter:

• Weak start to the year for occupier demand as take-up falls 19% in Q1.
• Trend of signing big pre-lets stalls in Q1 as occupiers focused on up-and-built spec and secondhand.
• Availability rates remain low, but quality improves.
• Volume of available space under construction elevated at 9.9 million sq ft.
• A further 3.8 million sq ft started development speculatively in Q1.
• Prime rents stable, but slight increase in landlord flexibility.
• Prime yields flat, but anecdotal reports of pricing on secondary moving out.
• Outlook for prime rental growth of 1.5% in 2019 remains unchanged, despite additional Brexit-related downside risks.

Inside the bulletin, we take a balanced look at each segment of the market and provide you with a brief snapshot of our view of quarterly activity.