Home Business NewsBusiness JLL’s research reveals robust industrial Big Box space take-up over last five years

JLL’s research reveals robust industrial Big Box space take-up over last five years

by LLB Reporter
24th Jan 18 10:21 am

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JLL has published its 2017 industrial Big Box research which reveals the following highlights:

  • Occupier take-up of Grade A big boxes (of 100,000 sq ft and over) in 2017 was 36 per cent down on 2016 and 11 per cent down on the historic ten-year annual average (2008-2017).
  • Despite a drop in take-up, demand was robust in 2017.  Relatively weak take-up statistics are bolstered by the fact that that there is currently circa 7 million sq ft of space in solicitors’ hands that will fall into take-up in 2018.
  • Retailers were the most active source of demand in 2017 accounting for 37 per cent of take-up.
  • Grade A availability at the end of 2017 was 3 per cent lower than mid-2017 but 21 per cent higher than the end of 2016.
  • At the end of 2017 the national vacancy rate for modern logistics stock stood at 6 per cent.
  • Nationally, JLL forecasts distribution rents to grow by 4.3 per cent this year. 
  • The investment market remains strong with the logistics sector forecast to outperform both the offices and retail markets over the next four years.

Commenting on JLL’s research, Richard Evans, Director in JLL’s Industrial & Logistics Group, said: “Despite a drop in demand during 2017, the overall level of take-up for logistics space has remained relatively robust over the last five years with an average of 18.8 million sq ft taken up per annum over this period compared with an average of 15.8 million sq ft in the preceding five years. This represents a 19 per cent increase from 2013-2017.  Of the 15.4 million sq ft of Grade A space taken up last year, 10.9 million sq ft comprised new floor space with remaining 4.5 million sq ft being good quality secondhand space.”

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