According to Gerald Eve’s latest Prime Logistics Bulletin more space has been pre-let or pre-sold in the second quarter of 2011, the highest level since 2007.
Richard Ludlow, head of UK logistics at Gerald Eve, said: “The emphasis on pre-lets and build-to-suit opportunities has become a driving factor of this market. With a shortage of available sites to deliver new product, we expect to see more strategic land buying during 2011 as developers wait to selectively and perhaps even speculatively develop in 2012.”
The report said that the constraint of suitable space at the prime end of the market belies the wealth of available second-hand stock and there is now almost 100 million sq ft being marketed across our regions. In supply terms this equates to a national average of around ten years’ supply and in some regions this is extended to around 20 years’ supply. It is clear that much of this stock is unlikely to be occupied and is therefore ripe for redevelopment.