Warehousing and logistics property breaks all records in 2014

admin Market and general news, Research

Back in April 2014 we posted an article on the positive impact, in terms of demand and development, on commercial property created by internet sales. According to research by Savills, 2014 was a stellar year for demand, take-up, development and funding for the warehouse and logistics property market – here are some highlights taken from Savills research;-

2014 has seen previously unheard levels of take-up in the logistics sector with take up rising 73% to reach 32.6 m sq.ft across the UK.

■ Not only has the amount of property transacted by space taken, but Savills tracked 149 separate deals, only the second time the annual deal count has exceeded 100.

■ An increased amount of deals over 500,000 sq.ft has seen the average deal size rise to 232,000 sq.ft.

■ The retail sector dominates the market but the strong performance of the manufacturing sector in the wider economy has seen the proportion of space apportioned to manufacturing rise from 20% to 24%.

■ The availability of buildings over 100,000 sq ft is the lowest since Savills started recording data on the market, standing at just 22 m sq.ft

■ Savills are currently tracking 15 logistics schemes over 100,000 sq ft through the development pipeline across the country totalling 3.54 m sq.ft. Of this, 10 units are currently under construction due for delivery through 2015. The 5 remaining schemes have been announced and await detailed planning consent to proceed.

■ Following record investment volumes in 2013 of £2.7 bn into the logistics sector the market has remained buoyant with investment volumes reaching £4.2 bn. The 54% increase in volumes has once again ensured a record year for the sector.

For further information please contact Andrew Coe or Paul Brierley

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