There is no end in sight to the shortage of UK warehousing floorspace, a new report has revealed.
Surveyor JLL says that despite a speculative warehouse building spree, the supply of good modern warehouse space is still more than 70% down on the peak it reached in March 2008.
The supply of new warehouse space is enough to last until next June, research shows.
JLL’s Big Box Industrial and Logistics report for the third quarter of 2015 shows total big box deals of 4.9 million sq ft, making the nine month total 13.5 million sq ft, slightly up on 2014. However, the overall supply of Grade A warehouse space at September 2015 was just 13.3 million sq ft – enough for just nine months – and only 19% up on the 11.2 million sq ft recorded in June.
Logistics research director Jon Sleeman said: “Aside from this recent uplift in availability, a direct result of a pick-up in speculative development over the course of 2015, the availability of new space has been on a downward trend for the last six years. This reflects the take-up of speculatively developed space over this period and the fact that very little new space has been delivered to the market since 2009.
"At the end of September 2015 there were 25 industrial units speculatively under construction and available nationally totalling 4.8 million sq ft. One further unit is under construction but has been let before practical completion.”