Man operating forklift in warehouse low sun shining Man operating forklift in warehouse low sun shining


UK Logistics & Industrial Regional Outlook

The UK Logistics & Industrial National Outlook report analyses quarterly UK industrial and logistics property activity across the UK including demand, market supply and pricing trends with an outlook to future trends in this property sector. 

UK Logistics & Industrial Regional Outlook

Bruno Berretta • 18/02/2020

Q4 2019 Logistics & Industrial Market in Brief

  • Take-up reached 6.8 million sq ft in Q4, taking the annual total to 32.5 million sq ft.
  • This represents a 18% decline on the record levels of 2018 (39.7 million sq ft), but it is a 5% increase on the 10-year average (31 million sq ft)
  • The deal flow was healthy by historic norms (225) but the average deal size smaller (144,000 sq ft) as uncertainty impacted larger requirements
  • A notable exception was the 2.9 million sq ft pre-let taken by JLR in the East Midlands in Q3, which skewed the share of the manufacturing sector in take-up (33%)
  • Otherwise the year was dominated by 3PLs (26%), while e-commerce was less prominent (9%) despite Amazon taking big chunks of space in the first half of the year
  • The East Midlands and London/South East had a particularly strong year while the West Midlands suffered from a quieter than usual manufacturing sector
  • Availability continued to rise (+21% y-o-y) to 71.8 million sq ft, driven primarily by new development
  • The surge in new supply has curtailed prime rental growth. C&W prime rent index for 100,000 sq ft+ and 50-100,000 sq ft units rose by 1.9% and 2.1% respectively compared to 3% during 2018
  • Cushman & Wakefield prime average logistics yield remained virtually unchanged during 2019, at 5.1%

UK Logistics & Industrial Property Outlook

  • While Brexit is far from being a “done deal”, market sentiment has improved since the general election. This will benefit both the occupier and the investor markets
  • Rental growth will be slower and more localised going forward as the market absorbs the quantum of new spec space delivered during this development cycle
  • Nonetheless, supply growth is expected to slow going forward as developers are slower to commit to new development. For 2020, there is so far 5 million sq ft of spec space under construction
  • Wellbeing and sustainability in logistics are themes likely to gather further momentum, with developers already introducing new features to their latest developments including social spaces and running tracks
  • Competition for “last mile” assets is likely to heat up in 2020, with some investors starting to eye retail to logistics conversion around London
  • Cushman & Wakefield forecasts a weighted average total return of 6.7% for the sector in 2020

More Insights

Insights • Forecast - Outlook

Logistics Outlook 2020

2020’s headline news is that logistics real estate will continue to be driven by key trends in e-commerce, technology, and labour availability.

Andrew Phipps
white delivery van
Research • Logistics

Last Link Report

This report reveals the last link of the e-commerce supply chain can account for 50% or more of total supply chain spend. The ‘last link’ refers to the final stage in the e-commerce supply chain, whether carried out by van or electric bicycle, urban or rural, to a collection point or a home.
Lisa Graham • 20/11/2019
Tampa Distribution Center
Research • Industrial

The Changing Face of Distribution

Technology and multi-modal solutions are ready for implementation and offer solutions to the logistics industry.
Rob Hall • 14/01/2019
Hand of quality control worker checking goods on delivery in the cold room warehouse
Insights • Industrial

Workplace in the warehouse: will wellbeing issues change building standards?

Solutions that target ESG issues are being incorporated into warehouse design and corporate culture to create employee-friendly warehouses in order to attract new talent and retain an existing trained workforce. Workplace wellbeing concerns and ESG (1) criteria are at the forefront of conversations for real estate occupiers and investors alike.
looking upwards at a crane blue duotone
Research • Logistics

UK Logistics Speculative Development Report

UK Logistics Speculative Development report assesses how the current volume of construction might impact the UK logistics property market.

Bruno Berretta • 14/03/2019
London Big Ben Westminster Bridge sunset
MarketBeat • Insights

UK MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly UK commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
looking upwards at a crane blue duotone
Research • Logistics

UK Logistics Speculative Development Report

UK Logistics Speculative Development report assesses how the current volume of construction might impact the UK logistics property market.

Bruno Berretta • 14/03/2019
person drawing a chart in marker on glass
Insights • Investment

The EMEA Investor Update

An update on the impacts of COVID-19 pandemic on real estate investment in EMEA. 
James Young • 25/11/2020
workers in coworking space blurred man walking past seated women
Research • Coworking

Coworking Trends

We outline the difference between the offers, along with market leading research on coworking trends across the world.
Europe on globe, Linköping, Sweden
Research • Investment

European Forecast & Fair Value Index

The latest data insight on commercial real estate investment opportunities across Europe.
Riccardo Pizzuti • 04/11/2020
Westminster Bridge towards Houses of Parliament, London
Insights • Economy

Brexit Trade Negotiations and What They Mean for Businesses

Like COVID-19, Brexit has major implications for businesses across the country whatever the outcome of the negotiations. 
Richard Coleman • 04/11/2020
red steel building
Insights • Commentary

UK Real Estate Perspectives

As the COVID-19 pandemic envelops the globe, we are committed to providing our clients with up to the minute intelligence and commentary as to what is happening in the real estate markets.
Digby Flower • 04/11/2020

Related News

Student Apartments
UK Student Accommodation Sector Remains Upbeat

Investment in the UK student accommodation market hit a record £5.15 billion in the first seven months of 2020, despite a fall in transactional activity since February.


UK banknote close up of Queen's face
Budget Reaction

Cushman & Wakefield experts from across the UK react to this year's budget and what it means for property.


Elena Pemberton and Richard Wateridge receiving the Platinum Clean City Award 2020
Platinum Clean City Award

Cushman & Wakefield has been recognised for its commitment to improving the environmental performance of its corporate offices.



Get in touch and we can assist with any additional information you need.