According to Jones Lang LaSalle’s Property Predications as at September 2011 there was approximately 1 million sq ft of industrial floorspace under construction speculatively in 24 schemes across mainland UK. This compares with the pre-recession peak in mid-2007 of 15.5 million sq ft in 131 schemes.
With speculative development is set to remain limited in 2012, the report predicts that good quality available supply is likely to diminish as take-up exceeds replenishment. But poorer quality available stock could increase due to weak take-up and business failures.
Reflecting market demand and supply conditions, the report predicts that a number of locations will see some rental growth next year, mainly in and around London, but rents for poorer quality space will remain under downward pressure.