JLL’s Western Corridor Industrial Market report reveals that during 2017 around 3.3 million sq ft was transacted in West London and 2.3 million sq ft taken-up in the Thames Valley, a combined total close to that in 2016 and to the five-year average.
The stable market was a reflection of a changing market in which more smaller and mid-box units were sought by occupiers, and a pivot towards West London – but away from the Thames Valley.
Melinda Cross, director JLL Industrial & Logistics Heathrow/West London, said: “The average size of unit taken up in 2017 totalled 12,695 sq ft slightly up on 2016 when the average size of unit taken up was 12,126 sq ft.”
JLL noted that take-up in 2017 was 4% higher in West London compared with 2016 but 6% lower in the Thames Valley over the same period.
According to JLL’s Western Corridor Industrial Market report, at the end of 2017 there was around 7.9 million sq ft of industrial floorspace available in thearea, 9 per cent up on the end of 2016.
JLL say that the pick-up in supply was a result of new speculative development taking place across the Corridor, particularly some new big box units being developed around Heathrow Airport and a couple of larger second-hand units coming back onto the market.
Cross said: “On balance, we expect available supply in the Corridor to fall over the next 12 months as the demand remains strong for both new speculative floorspace coming on to the market and older stock.”