Industrial take-up declines in Q3

TAKE-UP of industrial space in the UK fell back in the third quarter marking the third successive quarter of falling volumes, according to research by agent DTZ.

But the agent said there has been an “unprecedented” take up in the North West over the past 12 months, removing much of the built space from the market.

This lack of grade A stock could be behind a 42% fall in third quarter regional take-up.

The report found that take-up of speculatively built and better quality second hand accommodation outweighed the release of space back to the market. Activity has been largely driven by demand from retailers taking space to service new business or expands their online operations.

According to DTZ there is now a shortage of grade A space in some locations which has led to take-up of better quality grade B stock with availability reducing by 3% in the third quarter. 

Outside of the larger logistics market DTZ has seen “encouraging” levels of activity with notable transactions in the last quarter including recycling group SITA’s purchase more than 200,000 sq ft at the former Wolstenholme Bronze Factory in Darwen, Lancashire.

The overall volume of available space in the region was around 34 million sq ft in the third quarter, augmented by the release of grade B and C space back to the market, either as the result of receivership or consolidation exercises.

Tony O’Keefe, DTZ’s industrial director based in Manchester said: “The ‘Big Box bonanza’ has been encouraging in terms of reducing built void space, however deals were agreed in an occupier market and units have been priced accordingly.”