Uncertainty and disruption were key themes in 2018 and 2019. The question is whether this will change for 2020.
The result of the general election has reduced political uncertainty and, we are already seeing a positive change in sentiment in the occupational market, and we are awaiting to see if the predicated investment bounce materialises as Brexit drama recedes (for now).
Key trends from the industrial and logistics market 2019 are:
- Investment transactions in 2019 are down on both 2018 figures and also the five year average.
- Political and economic uncertainty had a profound effect on investment supply, whilst demand remained relatively robust.
- The total number of big box (>90k sq ft) occupational transactions in 2019 was similar to 2018, however the overall square footage was down in 2019.
- There is a continued supply shortage of larger >250k sq ft units in the region, presenting an opportunity for developers in this size bracket.
At B8RE, we believe the fundamentals of the North West industrial market (both occupational and investment) remain strong given the constrained development pipeline and strong occupational demand, which is continuing to fuel rental growth in the region.
To read more on these trends and hear from our experts download our latest end of year report 2019