Industrial land prices will continue to fall this year, according to the June Property Snapshot from Colliers CRE.
In London and the South East land values are down 25 per cent and while in the Midlands and the North values have only fallen by between ten and 20 per cent from peak, the ripple effect from London and the South East is likely to cause these land values to drop even further. In addition, supply is outstripping occupier demand due to a strong recent development pipeline. This is causing short term developer traders to pull out of the market.
Len Rosso of Colliers CRE, said: “Rents in the logistics and industrial sector remain stable at the moment. However the early casualties are third party logistics companies.”