The industrial real estate market remains positive, according to research by JLL.
The company’s research found that:
-The level of demand was broadly stable in 2017 compared with 2016 in eight out of 11 regions, higher in two (the North West and North East) and lower in only one (Yorkshire & Humberside).
-No regions reported a pick-up in supply, partly reflecting very low levels of speculative development taking place across the market.
-At the start of 2017 there were 65 industrial and big box logistics schemes speculatively under construction nationally totalling 7.1 million sq ft. One year on around 26 per cent of this floorspace had been taken up – a lower proportion than expected given strong market sentiment and the low overall levels of supply nationally.
-Some regions saw a very good level of demand for speculative space: in the North West 87 per cent of the floorspace under construction at the start of 2017 had been taken up by the start of 2018. In the North East the corresponding share was 46 per cent, in the South East, 38 per cent and the East Midlands, 36 per cent.
Andy Harding, lead director JLL’s Industrial & Logistics Group, said: “The industrial market had a stellar year in 2017 and became the standout sector among the main commercial property types. From an investment perspective, the sector outperformed and our latest forecasts suggest this trend looks set to continue over the next four years.”