Industrial and logistics has gone from being the ‘“steady Eddie” of UK commercial property to the market sector seeing the fastest growth, a new report says.
The 2018 Industrial and Logistics Market Report, published by commercial property consultancy Lambert Smith Hampton (LSH), highlights “insatiable” investor demand.
A “heady cocktail” of structural change, tight levels of supply,and increased confidence vis-a-vis other sectors is fuelling growth, LSH says, adding deals during 2017 totalled £7.5billion.
“2018 has picked up where 2017 left off, with stock of varying size and quality changing hands across all parts of the market,” the report says.
It adds: “2017 was also remarkable for the sheer depth of investment demand; the year saw 540 separate deals, up 51% on 2016 and 39% above the previous record year for volume in 2014.”
LSH head of research Oliver du Sautoy said: “Advances in communications technology and increasing automation are steadily redefining both how we produce and consume, and the industrial and logistics sector is arguably at the fulcrum of this profound structural change.”
London-based Titan Investors – the company behind plans for a major new logistics park on the site of Total’s old UK North Sea headquarters at Altens, in Aberdeen – is among firms targeting growing demand for logistics facilities around the United Kingdom as shoppers demand faster deliveries for their purchases.
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