The U.K.’s warehouse property market is racing ahead, despite Brexit uncertainties, with Birmingham and the Midlands now claiming the title of Europe’s busiest regional shed scene.
New data from BNP Paribas Real Estate shows that, based on take up of units over 50,000 sq ft, the Midlands has become Europe's largest logistics property market. Greater Paris is now is second place.
Across the U.K. year-to-September take-up for distribution warehouses reached 22.2 million sq ft, 13.2% ahead of the corresponding period last year, with Q3 leasing activity accounting for 4.6 million SF.
Speculative completions are set to surpass this cycle’s peak, with BNPPRE predicting that newly completed units for the full year will total 9.1 million sq ft.
The Midlands claimed the largest share of demand nationally of warehouses of more than 100,000 sq ft, accounting for 35.4% of the total take-up, followed by the South East at 19.4% and the North West at 16.6%.
James Fairweather, Head of Industrial and Logistics Investment at BNP Paribas Real Estate, said: “It is reassuring to see that investment levels have remained buoyant throughout Q3. Overseas appetite continued unabated, accounting for around 21% of total industrial and logistics investment, demonstrating international commitment to the UK market.
“The final quarter of the year is already demonstrating a continued trajectory of demand outstripping supply and is expected to deliver another strong period of investment in both industrial estate and logistics properties.”