Supply

The supply of warehouse space in Scotland for units larger than 100,000 sq ft has fallen by 24% in 2019 to currently stand at 1.3m sq ft through nine separate units. The supply continues to be dominated by smaller, second hand units with 89% of the available units on the market being within the 100,000–200,000 sq ft size band. Additionally, in terms of available space, just 13% is of Grade A quality.

The decline in supply has pushed vacancy rates for units over 100,000 sq ft within the region to record lows, standing at just 6.09%. The largest unit on the market is Springburn Rail Depot providing 240,000 sq ft of Grade C second hand space.

Take-up

Take-up of units over 100,000 sq ft throughout Scotland totalled c. 650,000 sq ft through three separate transactions, a 407% increase on the amount of space transacted in 2018.

Transactional activity continues to revolve around second hand stock and BTS units, 82% of all space leased in 2019 was second hand, and 18% transacted was BTS space. Take-up continues to be constrained by both shortages in the size and quality of available units throughout the region; occupiers are having to settle for lower quality units to satisfy their requirements.

Development pipeline

There are still no units being speculatively developed over 100,000 sq ft in Scotland. We continue to predict stable or declining vacancy rates throughout the region in the medium term.

The Scottish industrial and logistics market would welcome speculative development to help relive the constrained nature towards lower quality units seen in the current supply.

_{Read the articles within Big Shed Briefing below.}