UK Logistics & Industrial Outlook

Q4 Key Findings:

• Occupier demand fell to 10.2 million sq ft during Q4 2022, a fall of 11% on the previous quarter, and taking total 2022 take-up to 54.5 million sq ft. Despite this fall 2022 remains the second strongest year on record, surpassing the then record of 52 million set in 2020.


• Demand dynamics shifted markedly during the year, with manufacturing take-up growing by circa 30% on 2021 volumes. Simultaneously a fall circa 75% was recorded YoY was seen in the Ecommerce sector, owed to a fall in parcel volumes, and a lull since the sectors acquisitive spree during 2020 and 2021.


• Availability rose for a second consecutive quarter, reaching 55.9 million sq ft. Despite this availability remains below the long term average, and supply shortages are most pronounced within the Grade B segment.


• Investment volumes stalled considerably during Q4 2022 reaching just £1.3 billion, the second lowest Q4 since 2012. This was largely due to widespread uncertainty within financial markets, and period of pricing transition, seeing yields Q4 2022 decompress by circa 150bps.