There is just 1 million sq ft of Grade A warehouse space available in West London according to latest figures from Jones Lang LaSalle.
Robust occupier take-up across the West London and Thames Valley market area saw 2.6 million sq ft of warehouse space let or sold in the first half of 2012, 43 per cent above the average over the past 10 years. This followed an exceptionally strong 2011 when the Western Corridor posted its highest level of take-up since Jones Lang LaSalle’s records began in 1995.
The availability of good quality Grade A industrial and warehouse floorspace fell by 31 per cent in the year to mid-2012 to stand at 1 million sq ft, its lowest level in 13 years. At the end of June 2012, only 8 per cent of total availability was in Grade A floorspace.
Jon Sleeman of Jones Lang LaSalle said: “The research evidence presented in this study suggests that the market balance in the Western Corridor is moving slowly in favour of landlords and away from occupiers, as highlighted, in particular, by the very low level of good quality available stock. We expect this market to lead the recovery in rents in the industrial sector and to see more speculative development over the next 12 months.”