Partner Article

Midlands logistics properties see strong take up

Take up of logistics properties in the Midlands was almost double that in any other region in the UK, with more than 8m sq ft of space secured last year.

Real estate giant BNP Parabis said the level of available logistics premises across the country is continually decreasing, and the Midlands has followed this trend.

Despite having just a one year of new supply left in the region, take up of logistics units is still strong.

In the fourth quarter in 2012 take up totalled 1.85m sq ft with 1m sq ft of this bought in larger properties over 250,000 sq ft.

Nationally, take up of logistics properties came to its lowest figure since 2008 at 27.8m sq ft, according to BNP Parabis.

Associate director at the real estate firm, Kevin Mofid, commented: “Currently, the Midlands only have one year’s worth of new supply available.

“As take-up increases, particularly from the automotive supply chain, there will be even fewer quality logistics properties available in the market.”

“The occupational figures suggest that it may be the right time for new, larger sized, speculative developments, due to the lack of current supply.

“However, from an economical point of view, those who acquired land at post-crash prices may find it hard to make speculative developments feasible.”

This was posted in Bdaily's Members' News section by Miranda Dobson .