Take-up of industrial space across Europe, Middle East and Africa (EMEA) increased by 14 per cent in the year to September 2011 compared to the same period last year, as occupiers continue to adapt to new distribution and manufacturing environments, according to Jones Lang LaSalle’s latest EMEA Corporate Occupier Conditions Industrial research report.
Take-up reached 3.6million sq m in quarter three, putting take-up levels on track to reach the 14million sq m mark by the end of 2011 – significantly above the ten year average of 9.2million sq m, although not quite reaching the record volume of 14.8 million sq m seen in 2010.
But concern over the ongoing economic climate in the Eurozone and the global slowdown in economic growth means that occupiers have become more cautious over the last few months. This was reflected in lower take-up levels in the third quarter, down 19% on the stellar second quarter.
Vincent Lottefier, chief executive, EMEA Corporate Solutions at Jones Lang LaSalle, said: “We believe that take-up rates across the EMEA region are being predominantly driven by demand from logistics operators, retailers and manufacturers as they adapt to changing retail patterns.
“In particular in Western Europe, increased online retailing has led to occupier looking for better located, higher quality space to service their distribution networks more efficiently.”
“Occupiers are working through real-estate portfolios and taking steps to make them more productive. Efficient supply chains remain of paramount importance, but tight supply of good product means there is little opportunity for occupiers to upgrade. For those industrial occupiers looking further afield and expanding outside of core Western Europe markets there will be more choice although we expect vacancy levels to tighten over the next 12 months.”