Letting activity in UK the industrial market increased 800,000 sq ft to 6.9 m sq ft in the first quarter of 2011, according to DTZ Research’s Property Times UK Industrial report, which covers the market for properties over 50,000 sq ft.
The report revealed that retailers and manufacturers dominated the take-up of industrial space during the quarter, accounting for over 90 per cent of all activity.
DTZ Research’s report also concluded that the total availability of industrial space fell to circa 182 million sq ft at the end of the quarter whilst grade A stock continued to fall, reflecting the continuing absence of newly built supply.
“Secondary grade space saw the largest reduction during the quarter, falling by around 6 million sq ft, largely due to the lack of availability of grade A buildings.
Simon Lloyd, Head of Industrial and Logistics at DTZ, said: “The report is further evidence of the market trend first noted during 2010, the reducing availability of good quality buildings in many parts of the UK.
“Indeed, the shortage is now evident in most parts of the country. Occupiers are now entering into build to suit projects which will be tailor made for their operations, but will not be available on attractive terms in the same way as those on existing building stock.”