Research
As sustainability and energy security become a key concern across the power-hungry industrial sector, a team from G… https://t.co/x4ZLsd5FE9
1 year agoPrime 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.
Post-pandemic demand impacted by high inflation and rising interest rates
The UK logistics market continues to cool after the heat of the pandemic, with most metrics covered by this research having softened or flatlined in Q2. Occupier take-up was down 16% in Q2 and availability was up 0.7ppts, meanwhile headline rents and yields were unchanged and speculative development starts slowed. Some form of post-pandemic slowdown was to be expected following the exceptional activity of the last three years. But business plans have been further hampered by a challenging economy of persistent inflation, rising interest rates and weak domestic demand. We nevertheless remain confident in the structural tailwinds supporting the sector and still anticipate continued (albeit more moderate) rental growth.
