Over 6m sq ft of UK big box space taken up in Q3 2019
Latest research confirms another year of strong demand for logistics space in the UK
LONDON, 08 October 2019 – The UK’s industrial and logistics market saw a strong third quarter, according to JLL, with big box take up reaching over 6.6m sq ft. This activity which was driven by a number of key deals including Jaguar Land Rover’s acquisition of 2.9m sq ft of space at Appleby Magna, has brought UK take up for the first three quarters of 2019 to 16.2m sq ft, up from 15.9m sq ft (1.89%) in Q3 2018.
JLL reports a vacancy rate of 9% with 25.8m sq ft of Grade A logistics space available across the country, of which 6m sq ft is being speculatively built, showing that supply levels are still relatively high. With new speculative schemes continuing to come forward, JLL forecasts that the vacancy rate will continue to remain at around 9% for the rest of this year.
Tessa English, director of UK research, JLL said: “Given the continued political and economic uncertainty, activity across the first nine months of 2019 are positive. As a result of the strong Q3 take up, we expect final take up in 2019 could match the five-year historic average which would represent another year of strong demand for logistics space in the UK.”
Commenting on these numbers, Ed Cole, head of logistics, at JLL added: ‘2019 has demonstrated the continued demand for logistics buildings in the UK witnessed over the last five years. The importance of moving goods across the UK has never been discussed more than it is now and occupiers looking to improve their supply chains to meet growing consumer demands has resulted in demand for better quality logistics space.’
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com