Industrial & Logistics Review Q4 2019
Our Industrial & Logistics report provides expert comment on current occupational and investment trends, along with market data and analysis.
- Total 2019 take-up came in at 26.9m sq ft*, comfortably above the 10-year average, despite high levels of political and economic uncertainty.
- No one sector or occupier dominated take-up in 2019, highlighting the diversity of occupier demand as companies look to future-proof their supply chains.
- 8.6m sq ft of speculative space reached practical completion in 2019, falling just short of the record 9.0m sq ft set in 2016. While we await further announcements, there is currently only 6.6m sq ft in the development pipeline for 2020, so supply is expected to remain tight.
- It was a strong end to 2019 for industrial and logistics investment, with £2.6bn transacted in Q4, by far the highest quarterly volume of the year, helped by two large portfolio deals.
- Total 2019 volumes were £7.6bn, down 14% on 2018, as political uncertainty and supply constraints weighed on investment.
- We expect investment to pick up in 2020, driven by positive occupier dynamics, greater political stability, and high levels of pent-up demand for a sector that benefits from strong fundamentals.
*BNP Paribas Real Estate industrial occupier data relates to units over 100,000 sq ft and does not include deals where land is acquired for development purposes.