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Demand for UK logistics and industrial property falls

Demand for UK logistics and industrial property falls

The first major analysis since the Brexit vote on 23 June suggests the first half of 2016 saw a total of 16.2 million sq ft transacted in units above 50,000 sq ft. The figure is 14% down compared to the second half of 2015, and 4 per cent down on the same period last year.

The firm reports a downturn in enquiry levels has been seen in some locations, something which was being witnessed across the sector prior to the EU referendum and is not thought to have come as a direct result of the UK’s Brexit vote.
Charles Binks, Head of Industrial Agency at Knight Frank, said:  The logistics and industrial sector has proved more resilient to the impact of Brexit than others, but the drop in demand in H1 has shown it not to be entirely immune.”

“The continued growth of online sales is placing increased pressure on many retailers margins and this will result in their having to address supply chain efficiency. We anticipate this demand under pinning a positive outlook for the sector moving forward.”

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