SEGRO signed £16.3m of new rent in the first quarter of the year, nearly double the £8.6m of new rent in the same period in 2016, according to its latest trading update.
The industrial and warehouse specialist completed about 350,000 sq ft of speculative developments in the quarter, reflecting a potential £1.6m of headline rent once fully let.
SEGRO also has about 8.6m sq ft of new space approved or under development, of which 68% is prelet. The potential headline rent for this space is £39m, reflecting a projected yield on total development cost of about 8%.
About 65% of the lettings the company signed in Q1 were prelets, compared with 41% in Q1 2016.
Vacancy rates were broadly stable, falling from 5.7% to 5.6% between December 2016 and March 2017.
David Sleath, chief executive of SEGRO, said: “SEGRO has had an excellent start to 2017.
“Investor demand for warehouse and industrial assets remains strong across our markets and this may lead to further yield compression and capital growth in the first half of the year.”
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