Research by BNP Paribas finds speculative development highest since crash
undersupply in the logistics market has sparked a 16 million ft² ‘Big Shed’ warehouse development boom in the first half of 2015, according to research by BNP Paribas.
The development boom saw 7.6 million ft² of speculative development in the sector - the highest since the crash in 2007 - with design and build deals on units over 100,000ft² accounting for 8.4m ft² of transactions in the first half of the year.
Activity by retailers drove take-up of industrial accommodation to 13.6m ft² in the UK during the first six months of 2015, up 7% on the same period in 2014.
BNP Paribas Real Estate’s Nick Waddington said: “Over the past 18 months the dire lack of supply in the UK’s industrial and logistics markets has seen occupiers increasingly looking at design and build as the best route of acquiring the space they need.
“The willingness of developers to make a start on many speculative developments is also helping to alleviate a chronic supply shortage.”