BREADTH OF OCCUPIER DEMAND SET AGAINST A SUBDUED SUPPLY PIPELINE SUPPORTS A POSITIVE RENTAL OUTLOOK
Occupier take-up was 12.4m sq ft in Q3 – up 6% on Q2 and 8% on a year earlier. Demand was diverse, with manufacturers driving the recent improvement, especially those in the renewable energy, construction and food & drink industries. Internet retail remains a structural demand driver, with logistics providers and retailers linked to e-commerce also active. The overall availability rate increased for the seventh consecutive quarter in Q3 to 6.9%, reflecting two opposing underlying forces. Limited development means new-build availability has continued to trend down from its 6% peak in Q3 2023, but a more than offsetting proportion of secondhand space came back to the market again in Q3.
