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Strong economic growth and improving market sentiment helped the UK industrial investment market reach an all-time high in 2014 with £7 billion invested in the market. Industrial take-up totalled 100.3 million sq ft, a 5% increase on 2013 - although take-up in units from 1,000 to 99,999 sq ft was 2% lower compared with 2013.
At the end of 2014, the total available supply of industrial floorspace stood at 230.6 million sq ft, 15% lower than 2013. Availability in units from 1,000 to 99,999 sq ft fell by 16%, with availability in units of 100,000 sq ft and over down by 15%.
At February 2015 there was 3.9 million sq ft of industrial floorspace speculatively under construction nationally in 35 schemes, an increase of 86% compared with the same time last year; of the 35 schemes under construction, 22 involved units smaller than 100,000 sq ft totalling 1.5 million sq ft and 13 involved units of 100,000 sq ft and over totalling 2.3 million sq ft.
Jon Sleeman, Head of UK Industrial research at JLL commented: “We expect demand to be robust in 2015. With available supply continuing on a downward trend this will have a knock- on effect on rents. We expect prime headline rents to increase in a number of key markets this year.”
Andy Harding, Director in JLL’s Industrial & Logistics team added: “With demand improving, there’s a shortage of good quality available buildings in many locations. Although there has been a much needed pickup in speculative development, we still need a stronger development pipeline to address shortfalls in availability in many markets.”
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Head of UK Industrial Research
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