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The numbers speak for themselves. By the end of Q3, the levels of capital deployed into the UK industrial and logistics market surpassed £10.8bn, beating the £10.2bn spent in the whole of 2020, according to data from Savills. Take-up for the year to date stands at just over 42m sq ft and the expectation is that we will surpass the record 50m sq ft transacted in 2020. Average vacancy rates across the UK stand at just 3.3%, quoting rents have risen by as much as 15% in some key locations and prime yields now stand at 3.25%.
Investment and take-up activity in Q4 is showing little sign of slowing down, with the industrial and logistics sector look set to smash a host of records for the second year on the trot. But there is a problem looming on the horizon. Occupier appetite for industrial and logistics space – driven partly by the rapid acceleration of ecommerce during the pandemic – has created a shortage in some markets and this is one of the biggest challenges facing the blossoming sector.
The findings of Property Week, Savills and Tritax Symmetry’s fifth annual Industrial and Logistics Census, in association with Analytiqa, demonstrate that lack of supply is one of the biggest challenges facing the sector
The census canvassed the opinion of industrial and logistics occupiers, developers, land owners, investors, asset managers, advisers/consultants and agents to create a rounded picture of the current state of the market; and given the economic issues caused by the pandemic and uncertainties surrounding the UK’s future trading terms with the EU, the findings are pretty impressive.
To view further insight from the latest UK Logistics Property Census, please click here.