Sheds take-up fell 27% in the first half of 2015 even as the North West market saw a major surge in activity.
A total of 16.8m sq ft of industrial property was leased in the first six months of the year, down by more than a quarter on the second half of 2014.
Despite the national slowdown, the North West market achieved an 18% increase in take-up, with 3m sq ft of space leased, according to Knight Frank’s LOGIC report.
Industrial investment volumes fell from £4.2bn to £3bn in the same period, the report added.
Charles Binks, partner of logistics and industrial agency at Knight Frank, said: “While the first half of 2015 has seen a steady take-up of standing stock, shortages experienced in the South East and the Midlands in 2014 are now spreading to other areas of the country.
“We believe that the current wave of speculative development will mirror this trend, albeit at considerably reduced levels from that experienced before the financial crash, leading to rental growth across all unit sizes for both new and good-quality second hand space.”
