Research
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.
BREADTH OF OCCUPIER DEMAND SET AGAINST A SUBDUED
SUPPLY PIPELINE SUPPORTS A POSITIVE RENTAL OUTLOOK
Occupier take-up was 12.4m sq ft in Q3 – up 6% on Q2 and 8% on a year earlier. Demand was diverse, with manufacturers driving the recent improvement, especially those in the renewable energy, construction and food & drink industries. Internet retail remains a structural demand driver, with logistics providers and retailers linked to e-commerce also active. The overall availability rate increased for the seventh consecutive quarter in Q3 to 6.9%, reflecting two opposing underlying forces. Limited development means new-build availability has continued to trend down from its 6% peak in Q3 2023, but a more than offsetting proportion of secondhand space came back to the market again in Q3.
