Yields Pushed Down by Tightest Industrial Property Supply on Record

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King Sturge is releasing the latest edition of its UK Industrial Floorspace survey. Published twice a year in March and September it reports on the latest trends and is a comprehensive review of availability, speculative development and prime rents for every UK region.

With the UK economy emerging from one of the most difficult periods in decades, industrial occupier markets remain challenging and supply continues to rise. However the increase in supply is slowing and there are some tentative signs of improvement in demand for both the industrial and distribution market.

King Sturge is releasing the latest edition of its UK Industrial Floorspace survey. Published twice a year in March and September it reports on the latest trends and is a comprehensive review of availability, speculative development and prime rents for every UK region.

Available industrial floorspace reached 23.925 million m2 at the end of 2009 and today, data from King Sturge shows that the supply pipeline is the tightest it has been since records began in 2001.

Against a fragile economic background, the overall market for industrial and distribution floorspace remains challenging, with demand generally patchy and thin. However, as speculative development continues to fall, the availability of new supply is gradually being eroded and as a result, certain markets are beginning to see a shortage of new, good quality stock.

It is therefore plausible that in some markets the balance, which has favoured the tenant for the past two years, may start to tilt in favour of landlords and developers over the coming year. In addition the distribution investment market is now very active for well-let properties to good covenants in prime locations.

To download a copy of the report go to: http://www.kingsturge.co.uk/research

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Regis Jacquemin
King Sturge
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Anna Behan
King Sturge
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