Demand for UK logistics and industrial space continues to power ahead with the 16.1 sq ft taken in Q3 pushing availability to record lows, according to new data from Cushman & Wakefield.

With 48.9m sq ft taken so far this year, 2021 is also on track to overtake 2020’s take-up volume of 53m sq ft, which was itself a record. Online retailers, with 43 per cent of Q3 take-up, and third-party logistics operators, continue to lead demand.

This booming demand has resulted in an unprecedented squeeze on supply and, for the first time since Cushman & Wakefield began tracking UK logistics and industrial supply in 2009, availability has fallen below 50m sq ft, to 49m sq ft. 

This in turn has sparked a new wave of speculative development, with 12m sq ft in the pipeline as at Q3, in an attempt to match supply to demand.

Bruno Berretta, UK Retail, Logistics & Industrial Research Lead, Cushman & Wakefield, said: “While e-commerce remains the main driver of activity, it is interesting to see demand emerging from ‘new’ sectors such as electric/smart vehicle manufacturing and vertical farming. 

“While their overall property requirements are relatively small so far, a greater focus on the ESG agenda going forward coupled with supply chain re-orientation post -Brexit could see this new breed of occupiers becoming increasingly prominent in the not-too-distant future.”