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Industrial and Logistics Market Report - March 2011

The UK Industrial and Logistics market report summarises take-up, development activity, rents and yields as well as examining future market trends.
In 2010 occupier activity reached a new record and eroding modern supply led to marginally increasing development activity from design and build developments. The balance of demand and supply is now starting to weigh in the landlords favour, albeit restricted to prime assets and locations, leading to increasingly tighter occupier terms.
Growth in industrial investment transaction volumes has been slowed by limited prime product in 2010. However, investor interest is expected to remain stable for “best in class” product in 2011, which may result in further yield compression in the prime segment.

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