According to the latest research figures from BNP Paribas, 84 per cent of the nationwide supply of industrial and logistics property is secondhand and if that isn’t bad enough for the first time since 2010 the total amount of space available fell by 1.1 million sq ft.
Researcher Kevin Mofid, of BNP Paribas Real Estate, said: “The fall in the supply figures has been on the horizon for some time as we have been witnessing an increasing polarisation of the market with the availability of brand new stock dwindling. As occupiers are being left with few opportunities to acquire new space the supply of better quality second hand stock is also falling.”
Head of industrial agency at BNP Paribas Real Estate, Ranjit Gill warned: “Due to the falling supply of existing, good-quality properties, occupiers are having to look at D&B options. To make such deals stack up tenants will have to face up to the realities of longer leases and higher rents.”