Publication

Big Shed Briefing – July 2017

Subdued start compared to 2016, but in line with long-term trends

Summary

■ The huge levels of demand from online retailers seen in 2016 have not continued into 2017. However, the market is performing to long-term averages with 11.8m sq ft transacted in the first half of the year.

■ We view this more a 'pause for thought' as requirement levels remain robust and we expect a number of large requirements to be satisfied in the second half of the year.

■ The West Midlands, South West and the East of England have performed exceptionally well. All regions have seen above average levels of take-up.

■ Nationwide supply has risen by 1.5m sq ft since the turn of the year, and now stands at just over 28m sq ft. However, it should be noted that given the nature of the market this volatility should be expected as large units being developed speculatively, subsequently marketed and then occupied can easily skew reporting.

■ Investment volumes remain strong with £2.3bn deployed into the sector in 2017. The number of deals has fallen by a third, but a number of large capital investments and portfolio transactions have maintained the buoyant investor sentiment.

Main image: Lyons Park in Coventry where Goodman, advised by Savills, have leased a unit of 440,000 sq ft to a major online retailer

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