A significant increase in take-up for industrial and warehouse property has been reported for the first time since 2002 supply dipped below 651,000sq m (seven million sq ft), according to Rogers Chapman in its latest Golden Triangle Research report. Also, the company does not expect any more downward pressure on rents and anticipates rental growth within the next year.
Rogers Chapman says demand is focused on small units of 930sq m or less and large units of 4,650sq m or more which has created a three-tier market where properties in the mid-size ranges are most likely to be left vacant while the upper and lower tiers face under supply. Mid-size ranges are likely to dampen growth in this segment of the market, says Rogers Chapman.
Divisional director Karen Thomas comments: “We are encouraged to see an increase in enquiries and especially by the renewed vigour in the distribution sector – that is our life- blood around here. I wouldn’t like to overplay the T5 card but airfreight is a growth sector and Heathrow expansion obviously feeds through to demand around the airport where opportunities to develop are so rare that it creates value by default.”
and ‘expensive’. This view is probably most widely held in the logistics property sector where margins are comparatively low and occupiers are looking for the cheapest deal.”