Demand for warehouse floorspace is expected to fall in the North West and Yorkshire in the second half of 2017.
A new floorspace tracker published by JLL says that agents remain generally upbeat over the next six months with five out of 11 UK regions expecting occupier demand to be higher over the first half of this year than was the case in the second half of 2016. Demand in the remaining six regions is expected to remain broadly unchanged.
However, take-up is expected to remain stable in nine out the 11 regions and fall in the North West and Yorkshire and Humberside, in both cases due to a diminishing supply of good quality buildings.
JLL expects available supply to be lower at mid 2017than at the end of 2016 in every region bar the South West, where we are not expecting any significant change.
Jon Sleeman, director EMEA & UK Logistics Research at JLL, said: “Given expectations of a decline in available industrial space across all regions, we believe that there is still further potential for rental growth. Our latest model-based forecasts show growth of just under 3% this year for the sector overall, led by standard industrial property in London at close to 5%.
“Overall, we expect industrial market conditions to continue to favour developers and investors this year with available supply in ready-to-occupy buildings remaining tight. Corporate occupiers requiring space this year will still continue to find limited immediate market choice.”