Midlands top of the industrial space take up table, new research reveals
THE Midlands continues to lead the way when it comes to industrial property take up.
Research from property consultancy BNP Paribas Real Estate shows 2.4m sq ft of space was taken up in the region in Q2 of this year.
Take up in London and the South East in Q2 2013 was 1.96m sq ft, in the North West it was 2.31m sq ft and in Yorkshire and The Humber it was 1.35m sq ft.
Overall take up of industrial property in Q2 2013 was 9.9m sq ft, the highest level since Q3 2011.
UK take up for the first half of 2013 reached 17.1m sq ft, almost 2m sq ft higher than the first half of 2012. Design and build deals accounted for 5.06m sq ft of take up in H1 2013, a rise of 69% compared to H1 2012.
Stephan Rowan, Birmingham industrial agency director at BNP Paribas Real Estate, said: “The level of new logistics units available on the market continues to decrease across the UK. Nationwide, supply fell 1.8m sq ft to 142.1m sq ft, whilst the level of new stock in all core regions also continues to fall with just 20m sq ft available nationwide.
“The occupational figures suggest that it may be the right time for new, larger sized, speculative developments, due to the serious lack of supply.”
Andrew Meikle, Birmingham head of investment at BNP Paribas Real Estate, added: “With growing occupational fundamentals, we are experiencing significant yield compression for both good quality multi let stock and distribution units throughout the Midlands.”
