JLL’s Western Corridor Industrial Market report reveals that during 2017, approximately 5.6 million sq ft of industrial floorspace was taken-up across the Corridor with around 3.3 million transacted in West London and the remaining 2.3 million sq ft taken-up in the Thames Valley. Take-up in 2017 matched the level of demand recorded in 2016 and was 6% higher than the five-year average from 2013 to 2017 (5.2m sq ft).
Commenting on JLL’s findings, Melinda Cross, director JLL Industrial & Logistics Heathrow/West London, said: “During 2017, JLL’s Industrial & Logistics Heathrow/West team transacted 1.968 million sq ft across 92 deals. The level of Western Corridor demand recorded last year was one of the highest on record and was only surpassed in 2011 when two large big box transactions boosted overall take-up. 2017 represented a more robust level of requirement from the smaller end of the market. The average size of unit taken up in 2017 totalled 12,695 sq ft slightly up on 2016 when the average size of unit taken up was 12,126 sq ft.”
Looking at the two main regions of the Western Corridor, JLL noted that take-up in 2017 was 4% higher in West London compared with 2016 but 6% lower in the Thames Valley over the same period.
Raphaële Naud, research analyst, JLL, added: “We remain positive about 2018 because we are confident that demand for smaller industrial units will continue to drive take-up levels across the Western Corridor. Economic and political headwinds could potentially slowdown occupier decision making in 2018 but we believe that demand has the potential to match the five-year average and once again total over 5 million sq ft this year.”
According to JLL’s Western Corridor Industrial Market report, at the end of 2017 there was around 7.9 million sq ft of industrial floorspace available in the market. This was 9% higher than at the end of 2016: 4.9 million sq ft was available in West London and 3.0 million sq ft was available in the Thames Valley. The pick-up in supply was a result of new speculative development taking place across the Corridor, particularly some new big box units being developed around Heathrow Airport and a couple of larger second-hand units coming back onto the market.
Melinda Cross concluded: “On balance, we expect available supply in the Corridor to fall over the next 12 months as the demand remains strong for both new speculative floorspace coming on to the market and older stock.”
JLL’s Industrial & Logistics Heathrow/West team comprises Melinda Cross, Shaun Rogerson, Sarah Downes, James Miller, Tom Lowther, Phoebe Farrell and Joe Jenkins.
