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CBRE sees take-up in industrial and logistics market fall in Q2 2017

CBRE sees take-up in industrial and logistics market fall in Q2 2017

Total warehouse take-up space across the UK in Q2 2017 fell to 2.74 million sq ft, down 56% on Q1 and almost a 30% drop year-on-year, according to research undertaken by CBRE.

Its UK Monthly Industrial & Logistics Snapshot has depicted that e-commerce has been prominent, accounting for 35% of all take-up activity over the past 12 months. The automotive industry is also making significant gains and comprises 9% of the overall market.

Availability fell during Q2, with currently only five months of Grade A supply (8,175,000sq ft) across the UK. Speculative development activity across the UK also fell during Q2, with currently 21 schemes under construction with practical completion in 2017.

CBRE Industrial and Logistics Advisory Jonathan Compton commented: “Although the market has been slightly more subdued in the first half of the year, there remains a healthy appetite from investors looking to deploy capital into the sector. At present, there is a significant demand/supply imbalance, with only five months of Grade A supply remaining across the UK  which has put constraints on the market.

“However, key drivers in the occupational market, especially the growth of online retail, are expected to witness further growth and will continue to drive activity across the logistics market,” he concluded.

Click here to see the full CBRE H11 2017 infographic.



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