Speculative industrial space larger than 50,000 sq ft has been developed outside the M1/M6/M25 corridors in Q1 for the first time since building recommenced in late 2013, according to DTZ.
Grade-A availability increased to 12.2m sq ft in Q1, signalling the end of a downward trend in effect since 2009. During this period a lack of development meant this best-quality available space fell by 77% over five years.
Occupiers continue to use the build-to-suit market, which accounts for 4.5m sq ft, or 84% of grade-A take-up in Q1 2015. Q1 build-to-suit take-up was already significantly higher than that of the entire second half of 2014.
DTZ head of UK research Ben Clarke added: “This increase in developer activity has been very welcome at the supply-starved prime end of the industrial market. With occupiers actively seeking out the highest quality buildings, we expect industrial prime rents to rise by 2.2% on average per year over the next five years.”
