UK Industrial Marketbeat Reports

For the data behind the commentary, download the full Q3 2024 UK Industrial Report.

Occupational market remains muted in Q3

Take-up of Logistics and Industrial properties in the United Kingdom totalled 6.2m sq ft during Q3 2024 across 43 deals, the lowest quarterly volume since Q1 2020. Despite a markedly slow quarter with volumes impacted by ongoing uncertainty in the UK economy, take-up during 2024 is both 18% higher than at this point in 2023 and is 5% above the 5-year Q1-Q3 pre-pandemic average.

Supply increases for the first time since 2024

Total availability increased by 1m sq ft during the quarter, reaching 64.2m sq ft available over 429 properties. This marks the first rise in supply since Q4 2023, albeit a relatively small increase of just 1.65% quarter on quarter. Despite the headline quantum increase, the number of available properties contracted pointing to a marginal uplift in the size of buildings available. The increase in overall level of supply was driven by an increase in the availability of Grade A space which now stands at 44.8m sq ft, approximately 70% of all stock.

Investment volumes renege in face of uncertainty

Total investment into the Logistics and Industrial sector reached £1.4bn during Q3 2024, a 16% contraction on the Q2 2024 volume and 32% below the Q3 2023. As such total investment into the Logistics and Industrial sector year to date stands at £4.5bn 13% below the same period during 2023 and 23% below the 5-year pre-pandemic Q1-Q3 average. The most competitive investor demand has shifted focus to multi let assets where greater and quicker access to reversion exists.