Global real estate firm, CBRE, has revealed that 2020 saw a record-breaking take-up of UK logistics space, exceeding that of any other year on record.
Despite the troubles facing many other sectors, 2020 will be seen as a good year as far as UK logistics is concerned with a new record being sent for take-up of space throughout the country.
According to figures produced by global real estate advisor CBRE, there was 42.97 million sq ft of space taken up last year, 69% higher than 2019 (25.38m sq ft).
The record-breaking figure also saw more transactions take place over 2020. A total of 134 deals completed last year, compared to 92 in 2019 – representing a 45.7% increase. CBRE has stated that the pipeline for 2021 continues to look strong with 8.6m sq ft currently under offer.
Commenting on the figures, Jonathan Compton, Senior Director, UK Industrial & Logistics at CBRE, said: “It has been a phenomenal year for logistics take-up. Following two record-breaking quarters set in Q2 and Q3, and take-up in Q4 totalling more than 10 million sq ft, almost double the quarterly average. The strength of these numbers has been underpinned by the constant demand for third-party logistics and online pureplays.”
‘Online pureplays’ (defined as companies with limited or no physical presence) and third-party logistics accounted for the largest proportion of total take-up as they both did in 2019, representing 31.3% (22.1% in 2019) and 29.3% (22.7% in 2019) respectively.
In terms of locations, CBRE has revealed that the M1 corridor remains the most attractive location for UK logistics, with take-up in the South East and East Midlands representing 49.4% of total take-up in the UK last year.
Success wasn’t just limited to the East Midlands and the South East; however; CBRE also revealed that Yorkshire & the North East and the South West regions also recorded their highest annual take-up figures. The active Yorkshire market has also shown a promising start to 2021, with over 3.5 million sq ft under offer.
Paul Farrow, Executive Director, Head of UK Logistics at CBRE, said “The pandemic emphasised the importance of logistics operations and demonstrated the resilience of the real estate sector supporting them. Looking forward, we expect appetite for the Logistics sector to continue to grow, with over 8.6 million sq ft currently under offer and available space at its lowest since 2017.”