The amount of warehouse space taken up in third quarter of this year totals 10.39 million sq ft according to BNP Paribas Real Estate, the highest take up figure since Q3 2009.
Kevin Mofid, logistics analyst at BNP Paribas Real Estate said: “Take up for 2011, to the end of Q3, has totalled 24.95 million sq ft which is 200,000 sq ft less than the same three quarters for 2010. However based on active requirements and buildings which are known to be under offer, we expect that take up for the whole of 2011 should pass the 30 million sq ft mark which will be an increase on the 29.86 million sq ft achieved in 2010.”
While this may be good for landlords the result is not so good for occupiers as good modern stock supply is now in serious shortage despite there being a total of 147 million sq ft on the market. Delving deeper, Mofid notes that the figures start to show a worrying polarisation of the market both in terms of availability of new space and the size of space on the market. And in some markets the availability of stock is becoming a critical issue.
Nationwide, there is currently 4.5 years of supply across new and second hand units. But for new units in the Midlands this falls to 1.4 years, whereas Yorkshire has 3.6 years’ supply, the highest figure for any of the core regions.
As of the end of Q3 there is a glut of second hand property available making up 82% of total supply, up from 75 per cent this time last year. However the level of new stock on the market continues to decrease with just 23.5 million sq ft available, a decrease of 20 per cent year on year.
