Pictured above: David Binks
Occupancy costs and rents in most industrial markets in the UK
held firm in 2010, according to Cushman & Wakefield's
Industrial Space Across the World 2011. Heathrow rents were
unchanged with an occupancy cost of €235/sq.m/year,
maintaining its position as the world's most expensive industrial
location.
Industrial rents are a key indicator of economic performance and
are inextricably linked to demand for manufacturing and industrial
production and consumer demand for goods. 2009 saw a marked fall
with compressed rents in all regions of the world or the first time
in the report's 15 year history.
The report, which monitors rents and total occupancy costs in 53
countries, reveals that rents in most of the UK industrial
locations monitored held firm in 2010.
Karen Thomas, National Logistics & Industrial Partner in the
London office of Cushman & Wakefield, said: "The continuing
success of Heathrow's industrial market is mainly due to its
strategic location and its role as an international gateway for
passengers and freight. With the development pipeline effectively
turned off, the supply of quality premises will continue to fall in
2011 as take-up eats into existing stock. Some occupiers will need
to look to prelets to secure the right premises, in the right spot
for their business."
David Binks, National Logistics & Industrial Partner in the
Birmingham office of Cushman & Wakefield, said: "The economic
conditions in the Birmingham region continue to be challenging for
the industrial property market.
"However, a steady level of demand and take-up is reducing the
availability of grade A and grade B space. In addition, the lack of
speculative development is complementing the reduction in supply,
which is leading to a resurgence in the build-to-suit
market.
"The warehouse sector has dominated demand during the past ten
years, and continues to do so. There is an increase in
manufacturing demand particularly in the automotive and aviation
sectors which is been driven by exchange rate benefits and the
positive trading circumstances of the primary manufacturers."