The UK logistics market achieved total take-up of 25.38m in 2019, according to global real estate advisor CBRE. Despite being down 20% on 2018, demand remained strong and take-up was above the long-term average.
There was a total of 92 deals across the UK in 2019, and the pipeline continues to look strong with over 10m sq ft of logistics space under offer at the end of the year, an increase of 233% compared to 2018.
Third-party logistics providers took the most space in 2019, representing 22.7% of total take-up. Online retailers and the Motor industry completed the top three, constituting 22.1% and 18.3% of total Logistics take-up respectively.
The M1 corridor remains the most attractive location for UK Logistics, with take-up in the South East and East Midlands representing 62% of total take-up in the UK last year. The South East experienced its highest ever take-up levels; 6.28m sq ft of space was leased in 2019, with an additional 3m sq ft under offer, which is likely to complete in Q1 2020.
Tasos Vezyridis, Senior Director, Research at CBRE said, “The Industrial and Logistics sector continues to outperform all other sectors. Robust occupational market fundamentals ensured that Industrial and Logistics ended the year strongly, with the big box logistics pipeline remaining very active alongside a substantial amount of space under offer across the sector as we head into 2020”.