Prime rents for 10-50,000sq ft warehouses in Scotland have jumped three times faster year on year than the UK average as the lack of building activity forces businesses to compete for available space, according to the latest figures from Colliers International.
The commercial property firm found that prices for prime industrial space rose on average 7.7% in the 12 months to July 2017, compared to a rise of 2.3% in the UK as a whole, to the current Scotland average of £7.59 a square foot. Current UK average is £8.68 a sq ft.
The firm say their biggest concern is the area around Glasgow, which accounts for much of Scotland's industrial and logistics needs but is running short of space to accommodate the growth in manufacturing and the retail delivery and distribution segment.
Bo Glowacz, senior research analyst, Research and Forecasting at Colliers International, said: “Availability has been declining gradually year on year in Greater Glasgow to the present 7m sq ft.”
“There are virtually no new or nearly new available buildings of between 30,000 and 95,000 sq ft, and just 3 modern warehouses of over 95,000 sq ft currently available, all within Eurocentral.”
Iain Davidson, head of Colliers International's Industrial and Logistics team in Scotland, said that the real lack of available properties at the larger end of the scale posed a problem for the economy. “Many businesses now see modern, good quality premises as a way to operate more efficiently.. The Scottish Government should be seeking to encourage commercial building, not placing barriers in its way such as the abolition of rates relief,” he said.