Greater demand from international capital sources and the return of large lot sizes to the market helped UK industrial investment volume record a 6% q/q rise to £2.6bn. The take-up of industrial and logistics property over 100,000 sq ft reached 6.5m sq ft in Q3 2024, a 20% increase on the same period last year.

• The stabilisation of yields combined with still-strong rental growth is now leading to positive capital value growth.
• The sector’s share of the total UK investment market remains above 20%, well above the pre-pandemic average of 13%.
• With the rate-cutting cycle now underway, and rental growth projections continuing to outpace inflation forecasts, we expect Q4 data to indicate liquidity continues to improve.
• There has been a 20% increase in big box take-up on the same period last year, and the annual 2024 take-up looks likely to exceed that of 2023, driven by diverse occupier demand for big box space.
• Occupiers continue to be attracted to Grade A space, represented by 78% of big box take-up in Q3 2024. 
• Supply has remained relatively stable from Q1 2024. There are currently 56.9m sq ft space available across the UK. Grade A space makes up 45% of available units, concentrated in the Midlands.
• There is currently 10.2m sq ft industrial space over 100,000 sq ft under construction across the UK, with c. 3.3m to be delivered before the end of 2024. 
• Units under construction are predominantly in the North West, Midlands and London and South East regions. Logistics operators took c. 2m sq ft in Q3 2024.