News release

JLL involved in over 40% of all Grade A big box logistics deals this year

Highest quarterly level of take-up on record with 12.4m sq ft of space let

October 05, 2020

JLL has today published its Q3 2020 UK Big Box Industrial & Logistics Market research, which reveals the following:

  • Occupier take-up of Grade A logistics floorspace totalled 12.4m sq ft in Q3, which is the highest level of take-up on record (6.6 m sq ft for the same period in 2019)
  • This does not include Grade A short-term COVID related (<12 months) requirements which have taken up an additional 2.6 million sq ft in Q1-Q3
  • JLL were involved in 42% of all Grade A big box logistics deals in Q1-Q3 2020
  • For the first nine months of this year Grade A take-up totaled 21.1m sq ft, this exceeds 2019’s annual total and the historic five-year annual average
  • Amazon accounted for 18% (4m sq ft) of all long-term Grade A floorspace taken up in Q1-Q3
  • E-commerce drove a large share of demand, accounting for 34% of total take-up since the start of the year
  • At the end of September there was just 22.6m sq ft of Grade A floorspace available nationally, supply was 17% down on the end of 2019
  • 5.9m sq ft of the available floorspace was speculatively under construction at the end of Q3
  • Vacancy rate stood at 7% at the end of Q3 including buildings under construction, which was lower than the end of 2019 (9%)

Tessa English, director industrial and logistics research at JLL, commented: “Q3 2020 was another turbulent quarter for the whole sector, and with a huge amount of economic uncertainty, the logistics market continued to demonstrate the importance of supply chains and the continuing demand for logistics floorspace to keep the nation moving.  We have seen the highest take-up level on record in Q3, which is testament to the resilience of this sector. E-commerce related businesses continued to take a large amount of space, reinforcing the shift in consumer shopping habits.”

Ed Cole, head of logistics at JLL, added: “It’s been fantastic to see a record quarter for take-up and for JLL to have been involved in over 40% of all the Grade A logistics big box deals this year. This has given us an excellent insight into how the market is performing, evolving and adapting to the global pandemic. There is a particularly strong shift in demand for existing units this year and as a result we have seen a significant drop in supply levels.  Nationally the vacancy rate is falling at the end of Q3 there was less than 6m sq ft of space speculatively under construction nationally. As a result, we are already seeing a supply shortage coming through, which we anticipate leading to rental growth for key regions.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.