Despite the ease in rent levels round the Eastern M25 industrial market over the past six to nine months rents are set to grow again according to property consultant Glenny.
Rental growth eased in Q2/Q3 2019 for the first time in almost eight years. with only one location in Glenny’s twice yearly Rent Survey where values edged upwards, leading to average rental growth of 0.1 per cent for the period, an increase of 2.1 per cent on the year.
John Bell, head of business space at Glenny, said, “The rate of growth in prime industrial rents slowed over the past six months after one of the strongest phases of growth the market has ever seen. But rather than this signalling the end of the cycle, we think the market is drawing breath, and rents will continue to advance with the demand for stock remaining strong and supply still tight.”
The latest Glenny research shows that the availability rate across the region is below three per cent (representing 8 million sq ft of floor space) and the demand for space close to a record high at just under 15 million sq ft.
Bell said: “Our research indicates that the depth of demand for industrial floor space is stronger than it has ever been, with a record number of occupier requirements registered over the past six months especially in the multi-unit mid box sector where despite the uncertain economical and political backdrop the number of applicant enquiries registered on our system has increased by 12 per cent.”
Take up of space in the first three quarters of 2019 has already reached 4.8 milion sq ft, already surpassing the previous year’s total, and almost 50 per cent of the figure has been directed to grade A space.”
By Liza Helps