South east industrial take up increases
Industrial take up in London and the South East rose by almost 60% in Q2 2012 in comparison with the first quarter of the year, according to BNP Paribas Real Estate.
The Midlands accounted for the majority of the transactions in the second quarter, with take up in the region totalling 1.75 million sq ft, 20% of the total national figure of 1.55 million sq ft, compared to 2.48 million sq ft in Q1. Nationwide, take up in Q2 2012 rose by 26% compared to the first quarter of the year, totalling 8.54 million sq ft.
Kevin Mofid, an associate director at BNP Paribas Real Estate, says: “Activity in London and the South East has increased this quarter, which is a positive sign.
“However, as we enter the quieter summer months, activity may reduce slightly. Looking ahead, take up so far is on a par with the half year point of 2011.
“Knowing the requirements in the market and what is rumoured to be under offer, we expect that take up for the year end will reach the same level as 2011, circa 30 million sq ft.”
Design and build space saw the biggest increase, where take up rose to 2.59 million sq ft, compared to 0.40 million sq ft in Q1.
National supply of available industrial and logistics property fell for the the second quarter in a row, totalling 146.8 sq ft of available space, a reduction of 1.3% in comparison with the first quarter.
Head of industrial agency at BNP Paribas Real Estate, Ranjit Gill added: “As occupiers realise that there is a restricted amount of new stock coming onto the market, the demand for better quality second hand stock continues to increase, causing supply to further fall. This market dynamic is helping to create an interest in design and build facilities.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .