Wednesday 26th Oct 2016 - Logistics Manager

Margin squeeze

Operating margins in the manufacturing sector are being squeezed to their limit, according to Colliers CRE’s April Property Snapshot. It found that while overall growth in the sector is positive, it has slowed markedly in recent months.

The increase in empty rates as of 1 April combined with a negative shift in yields is likely to slow down the development pipeline. Len Rosso, head of logistics and industrial with Colliers CRE, said: “In the last month Travis Perkins and Kuehne + Nagel have signed up to one million square foot of industrial space between them. This demonstrates that while the logistics and industrial property market is slowing, there are still significant transactions taking place.”