– In Q3 2024, the UK vacancy rate stabilised at 5.31%, slightly below Q2 (5.55%). During the quarter, three of the seven regions saw a decrease in the amount of stock available in their market.
– The amount of space under construction grew in Q3 to 25.5m sq ft, 6% below the same time last year. There were rises of both BTS and speculative space under construction QoQ.
– Prime rents increased QoQ in Scotland, Yorkshire & North East, and West Midlands, by 5.7%, 2.9%, and 2.5%, respectively. Rents remained unchanged in all other regions during the quarter.
-20 deals completed in Q3, bringing the year-to-date total to 65 deals. This is up from the same period in 2023, which saw a total of 58 deals. 33 units were under offer at the end of Q3, totalling 14.1m sq ft, up 16.6% from Q2 2024.
– Over half of this quarter’s deals were from units sized between 100k-300k sq ft, bringing the year-to-date total number of deals within this size bracket to 45. The average deal size so far this year is 261,987 sq ft.
– In the 12 months to the end of Q3 2024, third part logistics and distribution occupiers contributed the greatest share of take-up at 28.1%. This sector was followed by manufacturing occupiers at 22.8%.
Logistics Investment:
Investment volumes (transactions over £5m) totalled £1.4bn in Q3 2024. Year-to-date volumes total to £4.1bn. In Q3, multi-let deals continued to capture the largest share of investment volumes, at 43%. Portfolio deals contributed the second largest share of Q3 investment at 32%.
– By region, the South East captured 46% of Q3 investment volumes (excluding portfolios). The East Midlands and West Midlands followed, contributing 18% and 17%, respectively. In the 12 months to the end of Q3 2024, the South East saw the largest share of investment at 45%.
– In Q3, property companies led investment in the logistics sector, representing 28% of investment volumes. This was followed by private equity at 24%, and overseas investors at 17%. In the 12 months to the end of Q3 2024, private equity continues to be the most active buyer group in the market at 31%.
*Data from CBRE report on logistics