Take-up of ‘big box’ UK industrial and logistics space hit 15.6m sq ft in the first three quarters of 2024 – 21% ahead of the same period last year, according to the latest data from Avison Young.
While Q3 take-up stood at 4.5m sq ft, which was below the five-year Q3 average because of the pandemic, Grade A supply during the period was up 5% on the previous quarter to 49.9m sq ft across 217 units.
The Q3 investment volume of £195.5m was 72% below the five-year average. The East Midlands posted the highest volume of investment activity with assets worth £71m changing hands, followed by the West Midlands (£52.4m) and the North West (£35.6m).
Andrew Jackson, principal and managing director, industrial and logistics at Avison Young UK, said: “Despite elevated stock levels and a notable imbalance in available shed sizes, prime headline rental growth remains robust, especially in prime locations. Regions experiencing the most significant year-on-year growth include the North West, London and South East, and the East and West Midlands, where prime headline rents now punch into double digits at £10.25/sq ft.
“This encouraging outlook underscores the strong demand and investment potential within the industrial sector, particularly in key strategic locations. Furthermore, the new government’s growth mission will help to unlock the UK’s untapped potential and reduce barriers for investment.”
