Lambert Smith Hampton publish Industrial and Logistics Market (ILM) Report 2020
In what was a challenging year for the wider property market, UK Industrial & Logistics was remarkably resilient in 2019. Supported by positive fundamentals and structural change, the sector is well-placed to weather the storm posed by the COVID-19 pandemic relatively well and remain the asset class of choice once it passes.
Take‑up across the South East reached 11.8m sq ft in 2019, its highest level since, 2011 but only 8% above the annual average.
Key Findings in the Thames Valley:
Oxford: Speculative development is making a much‑needed return to the market. Bicester and Banbury have historically been the focus of activity, but 2019 has seen large scale development starts in Witney and Didcot. The county’s primary business and science parks will focus on attracting occupiers from within the Knowledge Economy, which is a sector dominating demand in the 5,000 to 50,000 sq ft bracket. This sector is driving rents across the region and has led to an increase in prime rents across the county
Slough: Continues to experience a buoyant industrial market, while vacancy within the Slough Trading Estate is currently under 3%. Demand from data centre occupiers remains strong, with the Link 225 site having been pre‑let to Cyrus One. There is limited opportunity to develop new stock, resulting in consistent increases in rental levels. New developments at 445 Malton Avenue (8,900 sq ft) and 212/213 Bedford Avenue (23,500 sq ft) are both expected to complete in Q2 2020, quoting £16.50 per sq ft.
Reading: Subdued take‑up in 2019 was due in large part to an extremely constrained supply of both built stock and D&B opportunities across all sizes. There is some speculative development coming through, with 60,000 sq ft completing at SEGRO Park Bracknell and 46,000 sq ft now underway across two units at Total Park, Theale. The pipeline of new stock is also set to improve, with Arlington recently submitting an application for a 162,000 sq ft four unit scheme at Reading International Business Park, and Panattoni close to submitting planning for a 192,000 sq ft three unit scheme in Theale.
Download the South East: M40 Focus infographic HERE.
Download the full report HERE: