Fundamentals look positive for logistics sector amid current uncertainty
Despite the fallout of COVID-19, take-up of logistics space was robust in Q1 2020 and is expected to exceed 75,000 sqm for the quarter.
- Total take-up in 2019 was 296,924 sqm, 13.3% above the 10 year average
- Occupied space rose by over 111,000 sqm in 2019 resulting in an all- time low vacancy rate of just 2.5%
- 56,670 sqm of new space was delivered to the market in 2019 all of which was pre-let or is currently reserved
- 43,670 sqm is expected to be built in 2020, over 50% of which is already committed / reserved
E-commerce and grocery sales are likely to drive the majority of demand for warehouse space during the crisis. However, with almost 50% of the 43,560 sqm of new space due for completion in 2020 already reserved, the fundamentals remain positive for a sector which we will all be reliant upon for the provision of vital supplies across our communities over the coming weeks
Gavin Butler, Director, Industrial & Logistics
2019 take-up fed through to net absorption of 111,738 sq m. This brought the vacancy rate among buildings larger than 500 sq m to just 2.5% in Q4 2019 – the lowest vacancy rate on record. No building of greater than 4,000 sq m built after 2010 is currently available
