JLL has released its latest UK Industrial and Logistics property market snapshot.
Commenting on the research, Andy Harding, lead director of Industrial & Logistics at JLL, said: “JLL’s research predicts that overall industrial take-up this year will be comparable to the level achieved in 2015.
"With the growth in e-commerce and last mile fulfilment, we expect increasing demand for modern industrial and logistics facilities in and around urban areas to fulfil these deliveries.”
Tessa English, associate director, UK Research at JLL, added: “JLL expects available industrial supply to stabilise this year having fallen significantly over the past four years (2012-2015).
"This prediction reflects our views that occupier demand will, at best, match the lower level seen last year, while a much higher level of speculative development will delivered to the market in 2016 compared with 2015.”
Other findings from JLL’s Industrial & Logistics research:
- Industrial take-up totalled 89.3 million sq ft in 2015, 11% down on 2014; take-up in units from 1,000 to 99,999 sq ft totalled 61.5 million sq ft, 5% down on 2014
- At the end of December 2015, the total available supply of industrial floors pace stood at 198.2 million sq ft, 14% lower than 12 months earlier; availability in units from 1,000 to 99,999 sq ft (140.8 million sq ft) fell by 16%, with availability in units of 100,000 sq ft and over down by 8%
- At the end of December 2015, only 7% of available space in units from 1,000 to 99,999 sq ft was in new or refurbished buildings
- Achievable prime headline rents rose sharply in many key markets last year; a number of locations saw uplifts of 10% and over
- Speculative development under construction at February 2016 stood at around 11.5 million sq ft across GB; speculative development is included in JLL's available supply totals; up on 12 months ago but still below the pre-recession peak
- Some £5.4 billion was invested in the UK industrial investment market in 2015; at the start of February prime yields for multi-let estates were around 4.50% in the South East and 5.50% in the major regional markets