While not immune to broader economic and political challenges, the outlook for industrial and logistics remains solid, with the sector continuing to outperform other commercial property assets.
- Industrial and logistics take-up in Q3 2019 reached 7.99m sq ft (100,000-plus sq ft units). Leasing activity was up 44% year-on-year, with total 2019 take-up set to come in just shy of the 5-year average of 29.2m sq ft.
- Speculative development in 2019 is on track to surpass this cycle’s previous record of circa 9.0m sq ft set in 2016.
- Investment volumes in Q3 2019 reached £1.46bn, up 20% on Q2. This brings annual volumes to £4.56bn as of end-September, 24% down on the same period in 2018.
- 2019 has seen fewer portfolio and big grade-A logistics deals due to a combination of long-term supply constraints, political uncertainty, and a reluctance among traditional developers to trade prime sites.
- Prime logistics yields for long-let assets with strong covenants remain firm, with little sign of outward movement.
Click to read Industrial & Logistics Review Q3 2019
