CBRE's Monthly Industrial & Logistics Market Snapshot - an overview of the ‘big box’ sector specifically focussing on warehouses in excess of 100,000 sq ft and an eaves clearance of 10 metres - has highlighted the total take-up by region, construction projects, availability, and key occupational and investment deals to date in 2017.
- Take-up in Q3 2017 was 2.46m sq ft across 11 buildings (eight Grade A and three Second Hand). This compares to 2.74m sq ft in Q2
- The take-up of online retailers in relation to other users has fallen over the past three months although still accounts for 20% of take-up over the past 12 months.
- There is currently 8.97m sq ft of available Grade A space representing eight months supply. Over 50% of available Grade A space is in the Midlands.
Jonathan Compton, Head of Industrial & Logistics Strategy at CBRE commented: “Industrial and logistics continues to thrive in 2017. There is still a high demand for space, particularly in the Midlands, where take-up over the past twelve months has reached nearly ten million square feet. Much of the demand has been driven by third party logistics, and despite a slight slowdown in demand from online retailers, we expect this sector will continue to drive growth for the rest of the year. We anticipate a strong final quarter to the year with the completion of a number of prospective lettings.”