Logistics sector prime stock take up at lowest levels since 2009
BNP Paribas, the UK based real estate company, has released a report showing prime stock take-up in the logistics sector to be at its lowest since 2009.
The report shows that ‘built to spec’ premises were favoured over outdated older units because they no longer met industry requirements.
Take-up has fallen to 6.67m sq ft in the third quarter, representing a 35% drop from the same time last year.
The fall has been attributed to the lack of property able to support the industry’s penchant for technologically advanced units able to support their state-of-the-art logistics technologies.
The report, compiled in conjunction with IPD, analysed 545 logistics properties in the UK, representing 28.5% of the total IPD Industrial Sector, worth £20.2bn as of the end of 2012.
Data analysts found that despite the results, at regional level the UK logistics sector outperformed industrials in seven out of ten markets. UK regions with the highest returns for the logistics sector were London & South East and Eastern with 8.0% y/y and 9.9% y/y, respectively.