UK big box vacancy rate inches up

The vacancy rate in the big box sheds sector has risen slightly during the third quarter, as more speculative schemes come out of the ground. There is some 25.8m sq ft of grade-A logistics space available, according to the latest findings from JLL, marking a 9% vacancy rate during Q3. Of this, 6m sq ft is being built speculatively. This compares with 8% at the end of the third quarter in 2018. JLL said it expected the vacancy rate to stay static at around 9% for the rest of this year, while speculative schemes continue to come forward. That said, take-up in the big box sector has grown by 1.9% to 16.2m sq ft in the year-to-date, from 15.9m sq ft in Q3 2018. Big box occupiers have taken up more than 6.6m sq ft during the third quarter. This was driven by a number of key deals, including Jaguar Land Rover’s acquisition of 2.9m sq ft at Appleby Magna. Tessa English, director of UK research at JLL, said: “Given the continued political and economic uncertainty, activity across the first nine months of 2019 is positive. “As a result of the strong Q3 take-up, we expect final take-up in 2019 could match the five-year historic average, which would represent another year of strong demand for logistics space in the UK.” Ed Cole, head of logistics at JLL, said: “2019 has demonstrated the continued demand for logistics buildings in the UK witnessed over the past five years. “The importance of moving goods across the UK has never been discussed more than it is now, and occupiers looking to improve their supply chains to meet growing consumer demands has resulted in demand for better quality logistics space.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette