UK Big Box H1 2022 Report
Take up and demand in the UK big box industrial and logistics market remains strong.
- Avina Panchasara
- Jon Sleeman
JLL’s new research on the UK big box industrial and logistics market highlights continuing strong market demand and supply fundamentals, despite economic headwinds and the on-going challenges to supply chains.
In Q2 2022 some 8.2 million sq ft was taken up involving Grade A buildings of 100,000 sq ft and over. Following a first quarter in which 8.6 million sq ft was transacted, this brought the total for H1 to 16.8 million sq ft, 25% above the 5-year half-yearly average. In addition, another 6.4 million sq ft was under offer as at the end of June.
The take-up for H1 2022 compares with full year take-up of 35.4 million sq ft in 2021, the second highest annual level on record, and highlights that market demand has remained robust despite more challenging economic conditions. In addition, the amount of space under offer will support solid take-up in Q3.
Available Grade A supply across the UK decreased by 7% over the quarter to stand at 19.0 million sq ft at the end of June, including space under offer. The available space comprised 5.7 million sq ft immediately available and 13.2 million sq ft under construction speculatively. The total available supply represented a UK vacancy rate of 5.3%, or just 1.6% if speculative space under construction is excluded.
With demand proving to be resilient to date and supply staying low, prime logistics rents increased by 19% in the 12 months to June 2022 across the 32 locations that JLL monitors across the UK.