Occupiers flock to logistics core

By Liza Helps, Property Editor, Logistics Matters

THE LATEST figures from Savills latest Big Shed Briefing show that 48% of UK industrial transactions of units of 100,000 ft2 or more occurred in the Midlands, up from the 10-year average figure of 36%. Deals in the first half grew to 22 from 16 compared to this stage last year. JLL's report though basically the same pointed to the East Midlands accounting for 45% of the UK's total, with the West Midlands accounting for 13%. 

Savills' Big Box review noted in the year to date occupiers had taken 5.02 million ft2 of space in 11 transactions in the East Midlands alone 87% up on the long term H1 average – and 2.99 million ft2  in the West Midlands  – up 37% on the lone term average. It said in the whole of 2023 take up totalled 8.12 million ft2 across 26 transactions – a 33% increase above the long-term annual average.

According to JLL's head of logistics Ed Cole: "The transactional share in the East Midlands was boosted by it landing both the largest BTS and largest speculative deal of the quarter." 

The largest BTS transaction saw Nike sign up for c 1.3 million ft2 at GLP’s Magna Park, Corby, while the largest speculative transaction also took place at Magna Park Corby, with logistics service provider Bleckmann signing up to MPC3 totalling 591,272 ft2.

Savills Birmingham Director, Industrial Ranjit Gill, said: “Positivity in the Midlands is in part due to occupiers taking advantage of rising supply, which now stands at 18.67 million sq ft, but also the lease event cycle with Savills estimating there are 6.6 million sq ft of lease events due in the Midlands in 2024. This demonstrates that whilst we have seen the logistics market expand over the last decade, ultimately the Golden Triangle remains golden.”