During 2019 UK logistics operators and retailers signed up for 19.9 million sq ft of big box warehousing in units over 100,000 sq ft.
Whilst the take-up figure matched the five-year average, the vacancy rate rose very slightly from 8% to 9%, and the volume of available supply (including floorspace under construction) rose by 15%.
The slight easing comes after a slow summer and autumn of deal-making as occupiers sat on their hands awaiting the end of the Brexit crisis and the outcome of the general election.
The figures from JLL released last week, suggest that the supply of new floorspace could rise further in 2020 as confidence returns.
Ed Cole, head of logistics, JLL explained: “2019 was a strong year for the sector and we remain positive about the logistics market, despite the expected economic and political headwinds. Already at the start of the year there are a number of active requirements in the market which we expect to translate into further take-up this year and overall we are anticipating another year of solid demand for logistics floorspace.”
Jon Sleeman, director of UK research, JLL said: “We expect to see further speculative development take place this year but overall, against a backdrop of good levels of demand in the market, we are not anticipating an increase in our national vacancy rate this year.