Abstract
We are still searching for superlatives to describe the ongoing health of the UK logistics and industrial market
We are still searching for superlatives to describe the ongoing health of the UK logistics and industrial market
Unit 3 Panattoni Park, Nottingham
Given the current economic headwinds, debate about the health of the retail sector and continued uncertainty about what our future trading arrangements with the EU will look like into 2019 and beyond, it is pleasing to report that we are still searching for superlatives to describe the ongoing health of the UK logistics and industrial market.
Currently occupier demand and warehouse supply remain in equilibrium. Reassuringly the mix of companies taking warehouse space has widened to include high street retailers, grocers, pure play retailers and manufacturers.
We should remember that the health of the retail sector is crucial to the health of the logistics sector, as almost two thirds of take-up relates to retailers in some way. Therefore activity by retailers such as Marks & Spencer, Shop Direct and B&Q to take additional warehouse space to ensure their supply chains are fit for purpose is a positive sign.
Take-up
FIGURE 1 | National take-up
Source: Savills Research
Supply and Pipeline
FIGURE 2 | National supply and vacancy
Source: Savills Research