JLL launches UK Industrial Tracker
JLL has launched a UK Industrial Tracker report which aims to "monitor and evaluate what is happening in the industrial property market with a sharper focus on standard industrial buildings rather than the large-scale logistics facilities".
Andy Harding, lead director of JLL’s UK Industrial & Logistics Group, said: “Earlier this year our research highlighted huge investor interest in industrial/logistics assets, with 60% of investors noting this was the sector that would see the most interest in the coming months. Our new UK Industrial Tracker sheds some light on the reasons why this interest in so strong.”
UK Industrial Tracker’s highlights include:
• JLL’s industrial agents remain generally upbeat over the next six months with five out of 11 UK regions expecting occupier demand to be higher over the first half of this year than was the case in the second half of 2016. Demand in the remaining six regions is expected to remain broadly unchanged.
• However, take-up is expected to remain stable in nine out of the 11 regions and fall in the North West and Yorkshire and Humberside, in both cases due to a diminishing supply of good quality buildings. JLL expects available supply to be lower at mid 2017 than at the end of 2016 in every region bar the South West, where it is not expecting significant change.
Jon Sleeman, director EMEA & UK Logistics Research at JLL, added: “Given expectations of a decline in available industrial space across all regions, we believe that there is still further potential for rental growth. Our latest model-based forecasts of the MSCI time series show growth of just under 3% this year for the sector overall, led by standard industrial property in London at close to 5%
“Overall, we expect industrial market conditions to continue to favour developers and investors this year with available supply in ready-to-occupy buildings remaining tight. Corporate occupiers requiring space this year will still continue to find limited immediate market choice.”