#ILLSTARRED CENSUS GETS THUMBSUP FREE#

#ILLSTARRED CENSUS GETS THUMBSUP FREE#

One annoymous occupier said: “The sector needs to gauge which businesses will leave the UK after Brexit and that will indicate where the free space will emerge for example, Telford has many German-owned businesses that may leave come 2019.” Alongside that, the potential impact of Brexit continues to weigh heavily on occupiers’ minds: 11% said it was the key factor having an impact on their business. Whilst lack of supply remains a problem for occupiers, rising rents are now a growing concern.

Employment issues (24%), rising rents (22%) and an inefficient planning system (14%) were also cited as the biggest challenges facing the sector. A third of respondents (33%) said it was the biggest challenge facing the industrial and logistics sector. Lack of supply was an issue among the whole sector. The pace of change in tenant requirements was another issue for developers and 50% stated that this issue was very important or important. They were also troubled by the length of the planning process, with 80% suggesting that making the process more efficient was very important or important – again, up on the 77% of respondents who cited this concern last year. The census revealed that developers and landowners were most concerned about the lack of development sites, with 93% of those surveyed stating it was very important or important to them when considering a new industrial and logistics scheme – up from 91% last year.

“Even 18 months ago 9.1m sq ft speculative development coming out of the ground over the next two years would have seemed like a daunting figure, but with demand evidently still high and sentiment strong this can only be seen as a positive thing”

More than half (53%) said they had grown their land banks in the past six months, an increase on the 47% of respondents who said they had done so in the previous year’s survey. “Even 18 months ago this would have seemed like a daunting figure, but with demand evidently still high and sentiment strong this can only be seen as a positive thing.”ĭevelopers and landowners have been buoyant in their site acquisitions in the past year and this was reflected in the answers of those surveyed. While the survey shows that some are still worried about the lack of supply, Savills is currently tracking more than 9.1m sq ft of speculative development that is due to come out of the ground during this time period, which in theory should help to alleviate some of the pressure currently faced by the industry. Richard Sullivan, national head of industrial and logistics at Savills, said: “It is very pleasing to see that more than half of occupiers anticipate requiring more space over the next two years. Overall, 88.6% thought take-up this year would remain similar (54.3%) or increase (34.3%), against a backdrop of robust take-up levels last year. Matt Barker, managing director of CBS Logistics, said that “London councils need to ensure that key industrial and logistics spaces are protected”.Īll respondents shared the positive occupier sentiment on future demand for space. However, 21% of occupiers highlighted a lack of availability of warehouse space or labour as the biggest challenge facing the sector, citing a shortage of suitable accommodation for expansion in London as a particular worry by several respondents. Occupiers specified that their increased space requirement was predominantly (31%) due to the continued growth in online purchases, the pace of change towards new retail channels and increased customer demand for delivery. Additionally, 41% said they envisage requiring the same amount of space in the next two years and just 5% said they would need less space.

Most encouraging for the sector was that more than half of occupiers who took part (54%) anticipated requiring more space over the next two years. Student Accommodation Conference & AwardsĪlmost 300 professionals from across the sector took part in the survey, more than a third of whom were occupiers keen to have their say on the state of the market.Offices, business parks & science parks.

Illstarred census gets thumbsup