Occupier take-up across UK sheds jumps 30%

Occupiers across the UK logistics and industrial sector have become more active, with take-up levels ticking up so far this year, according to Cushman & Wakefield. Take-up in the six months to June 30 this year reached 20m sq ft, a 30% improvement on the volume recorded over the same period last year, buoyed by a notably strong Q2. There were a total of 63 transactions recorded in the three months to June 30 this year, with 57 transactions taking place in the previous quarter. The second quarter’s total also represents the highest quarterly volume recorded in the last 18 months. The move was mostly driven by the return of demand for larger buildings and e-commerce and retail-related businesses. Take up for big box facilities, measuring over 100,000 sq ft, was recorded at 8.7m sq ft, a 20% uplift from the previous quarter. In contrast, the level of supply within the UK industrial and logistics market contracted for a second consecutive quarter, with total available space now measuring 63.2m sq ft, down from 64.8m sq ft in Q1 and having peaked at 66.4m sq ft at the end of 2023. According to Cushman, this fall in available space during the first half of this year has been driven predominantly by a reduction in the levels of available grade-B and grade-C space. At the same time, the availability of grade-A space has failed to increase due to a slowdown in development activity. Richard Evans, head of UK logistics and industrial at Cushman, said: “Although market conditions continue to prove challenging day-to-day, the return of some key occupier groups that have been muted throughout recent quarters, and the improvement in appetite in the big box market, is a good indication that a steady trajectory and further recovery is likely throughout the second half of the year.” Photo © EFAFLEX_Schnelllauftore/Pixabay