Hot off the press DTZ's industrial times report for Q3 shows a market reaching new low levels of take up overall but with supply also in decline incentives are hardening. The researchers behind the report predict no further drop in rents but no growth for the time being either. Here's a regional breakdown:
North West
- Jump in take up in Q3
- At current take up levels one year's grade A supply left
- Increased appetite for land sales and design and build
London, South East & East
- Busiest quarter so far this year but below long term average
- Hardening incentives and anecdotal evidence of increasing appetite for D&B
- Q4 take up expected to be strong
West Midlands
- Take up down in Q3 and significantly below the long term average
- Availability fallen below 25m sq ft for first time since Q4 2009
- Grade A space scarce
Scotland
- Take up dipped and dominated by second hand space
- Q4 take up expected to pick up
- Aberdeen market bucks the trends with pre-lets on the increase as grade A availability diminishes
North East
- No lettings and just one sale
- Future requirements coming from Nissan and its suppliers
- Grade A space limited and incentives expected to harden
East Midlands
- Take up improved in Q3 but still 25% below long term average
- Limited supply of grade A space will lead to hardening incentives from Q4 onwards
- Spec development could be a possibility in the New Year
South West
- Take up strong and move towards design and build
- Lack of space will drive a hardening of incentives
Yorkshire & Humberside
- Expected increase in demand for large sheds yet to materialise
- Owner occupiers active to capitalise on cheaper prices
- Availability continues to fall but rents remain too low to stimulate spec development
- Q4 take up looking positive
Wales*
- Q3 take up dipped but year so far reflects a 50% increase on long term average
- Grade A space in short supply and anecdotal evidence suggests refurbs are snagging occupiers.
*Look out for our Wales Focus in this week's EG.
Printing press image by Takomabibelot on Flickr
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