New developed warehousing space is at its lowest in a decade, according to Gerald Eve’s latest Prime Logistics bulletin.
Just 1.5 million sq ft of the 6.1 million sq ft of new warehousing space delivered in 2009 was built speculatively. This brings speculative development down to just 25 per cent of total completions, in contrast to the 50 per cent-plus accounted for during the boom of 2006-2008.
The lack of new development is beginning to affect availability: in the last three months of 2009, there was 24.7 million sq ft of new and refurbished space being marketed as available, down from 28.6 million sq ft six months previously. In some areas such as West Yorkshire there are very few, if any, large modern sheds available at all. The clock may have started to tick for occupiers to secure top-quality space on the best possible terms.
But there is still a glimmer of hope for those really good deals as long as occupiers are prepared to opt for second-hand space.
The report noted that, despite a reduction in the amount of new modern space, overall total availability slightly increased since the second quarter of 2009 to just over 106 million sq ft, largely as a result of second-hand space continuing to come to market.