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.
It’s been another quarter of impressive performance for UK logistics, particularly in the rental market. However, occupiers are looking forward with greater caution. High cost inflation and a stagnant outlook for the economy has forced some occupiers to adjust medium term growth plans. Meanwhile investment pricing has softened. The increased cost of debt has thinned competitive tension in the investment market and reports of ‘froth coming off pricing’ and ‘a pausing for breath’ were commonplace in Q2. However, this pause in activity comes at a time of strength for the logistics sector, with established structural drivers, weak supply and broad-based tenant demand.