Prime Logistics is an essential tool for any developer, investor or occupier interested in the market for logistics buildings over 50,000 sq ft in size across each of the UK’s 26 key distribution markets.
Market data continue to impress, albeit in the shadow of the most extraordinary year on record. Occupier demand remains strong, but take-up was 36% down on Q4. Availability is the lowest it has ever been but showing signs of bottoming-out. Meanwhile prime rents are rising at their fastest clip ever. Yields too are at record lows, but the pace of yield compression has slowed. Investors and developers are ramping up speculative build programmes, but concern over rising costs and labour shortages means they are looking to pass these costs on through the rental market. Appraisal assumptions on ERV and exit yield are being stretched and there is a collective rush to capture rental growth. Some occupiers though are pushing back, raising concerns over rental affordability.