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-Total Grade A take-up increased by nearly 2 million sq ft in the last 6 months -Retailers proving most active source of demand, taking up nearly half of Grade A floorspace-New availability is now 76% below its pre-recession peak
London, 25th July 2013 - Analysis from Jones Lang LaSalle shows that take up of floorspace in Grade A distribution units of 100,000 sq ft and over the first half of 2013 was double that in the same period last year. Analysis of the UK big box market in the first half of the year also indicates a 13% fall in available Grade A floorspace since the first half of 2012.
Grade A floorspace includes both new units and very good quality second hand stock.
Occupier demand has increased sharply. Take up of floorspace was 23% higher in the first half of this year compared to the second half of 2012 and Grade A take-up totalled 9.7 million sq ft in the first half of 2013, compared to 7.9 million in the second half of 2012 and 3.6 million in the first six months.
While demand continues to rise, availability is falling. At the end of June2013, availability levels dropped to the lowest level since 2005 at 6.8 million sq ft. New availability is now 76% below its pre-recession peak.
Retailers were the most active source of demand in the first half of 2013, accounting for 47% of all Grade A take-up, up from 39% in the second half of 2012.
Jon Sleeman, Director of UK Research in Jones Lang LaSalle’s Industrial & Logistics team commented: “There has only been one instance of speculative development in the UK since 2008, but it does seem that the market may be reaching a turning point with IM properties and Lancashire County Developments both constructing new units. We expect there to be further announcements in the second half of the year but this is likely to be quite modest rather than a wave of development.”
Richard Evans, Director in Jones Lang LaSalle’s Industrial & Logistics team commented, “The figures show that retailers are continuing to play a major part in the UK Big Box market as multi-channel retailing sets more challenges for supply chain management. It is encouraging to see some speculative development is in the pipeline, but with year on year online sales increasing by 16% and economic forecasting predicting average growth creeping up, demand for space looks set to rise.”
Notes to editors
The full report can be downloaded Here
Lauren Keith - PR
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