According to property consultancy JLL warehouse supply has dropped 15% on 12 months earlier.
At the end of 2020 there was 23.2 million sq ft of Grade A floorspace available, of which 5.7m sq ft was speculatively under construction. Supply at the end of 2020 was 15% down on 12-months earlier. Supply represented a vacancy rate of 7% at the end of 2020, which was lower than at the end of 2019 when it stood at 9%. Excluding the floorspace that was speculatively under construction at the end of 2020, the vacancy was around 5% at the end of the year.
Oliver Jones, a senior research analyst at JLL said: “With the vacancy rate falling to 7% at the end of 2020 and with nearly a fifth of the available floorspace under offer, there is already a good level of demand for floorspace as we enter 2021. As a result, we expect, Grade A supply to tighten in some regions across the country.”
Pix shows M&G Real Estate’s Imperial Park scheme in Coventry, West Midlands.