Nearly 7 million sq ft of warehouse space was taken up in the third quarter of the year up from 5.6 million sq ft in the second quarter, according to DTZ’s latest Property Times UK Industrial report
The report found that prime stock is relatively scarce and in some regions is now in very short supply. New stock is only coming to the market in the form of pre-let or pre-sale schemes. These are now the prevalent method of securing new space in a difficult environment for new supply.
Simon Lloyd, who is head of industrial and logistics at DTZ said: “The market is reaching an inflection point, where the continued shortage of space will increase the probability of rental growth in the near future, stimulating speculative development.”