Take-up of ‘big box’ industrial and logistics units of more than 100,000 sq ft reached 10.9m sq ft in H1 2024 – a 30% increase on activity recorded in the same period last year, according to the latest data from Avison Young.
Overall big box supply fell to 47.4m sq ft across 207 units at the end of Q2, down from 48.1m sq ft at the end of Q1. Some 35% of the available units have been speculatively developed and there continues to be a limited number of new units under construction.
Avison Young’s figures show current supply leans heavily towards smaller ‘big box’ units ranging from 100,000 to 399,999 sq ft, which constitute 91% of available inventory by number of units.
Andrew Jackson, 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 the best locations. Regions experiencing the most significant year-on-year growth include the North West, London and the South East, and the East and West Midlands, where prime rents now punch into double digits at £10.25/sq ft.
“This encouraging uptake underscores the strong demand and investment potential within the industrial sector, particularly in key strategic locations. Furthermore, the new government’s growth focus and £7.3bn National Wealth Fund will help spur development of advanced manufacturing such as gigafactories.”
