Warehouses account for a significant proportion of the UK real estate market and their use has evolved over time.

 

 

Their strong take-up is increasingly being driven by online retail.

Industrial take-up 2007

2007

Industrial take-up 2016

2016

 

But there is a shortage of supply...

  • Current vacancy stands at 4% of built stock.
  • New development limited to certain key areas and mainly larger units.
  • Current UK grade A availability equates to just 4 months’ supply.

UK availability by grade (M sq ft)

With strong barriers to entry...

  • High Build Cost makes development uneconomical.
  •  New site development is limited due to funding shortfalls and lender caution.
  •  Planning constraints pose significant obstacles in the development process.
 

This has led to the strongest rental growth for 15 years...

  • IPD growth strongest for 15 years.
  • UK industrials currently some of the strongest rental growth on record.
  • Secondary industrials rental growth is now outperforming prime.
  • Capital growth normally follows.

Average UK industrial rental growth (%pa)

Presenting significant asset repositioning opportunities...


Asset Repositioning Opportunities