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Savilles Shedtalk
In this issue of ShedTalk we look at the implementation of 5G and how this will change the Industrial market, ‘Why fast-track ‘build-to-suit’ development is the way forward in the race for warehouse space’ and finally why your supply chain is essential when making logistics real estate decisions.
It is pleasing to report that despite the current economic and political headwinds within the United Kingdom the market dynamics for the sector remain buoyant characterised by continued strong occupier demand and generally low vacancy rates.
Take up has remained consistently high for units over 100,000 sq ft reaching 9.42 million sq ft in Q3 2019. Savills research forecast take up to reach at least 31m sq ft by year end.
Supply remains steady at 35.8 million sq ft across 187 separate units.
Our analysis of rental growth forecast models highlights industrial and logistics is the only commercial asset class to not experience negative rental growth in a severe economic shock, instead showing a baseline forecast for positive rental growth into 2020.
Q3 2019, investment volumes into all industrial in totalled £1.36 billion a 12% increase on the volume seen in Q2 2019.
Industrial and logistics remains the global asset class of choice with supply and demand dynamics keeping Savills prime yields at record lows of 4.25% for prime single let logistics units and 4.00% for multi-let industrial estates.
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