RESEARCH

Big box bulletin

2020 review of distribution activity

2 million sq ft Integra 61, Durham

DATA & ANALYSIS

Occupier data

Investment data

Key stats

Regional data

COMMENTARY

Andrew Jackson

Principal & Managing Director, Industrial

Robert Rae

Principal & Managing Director, Industrial

OCCUPIER MARKET IN BRIEF

Take-up of large grade A warehouses >100,000 sq ft, amounted to 38.4 million sq ft during 2020, 40% above the five-year average. Amazon continued to dominate the market accounting for 30% of all take-up.

"Many organisations favoured the immediate availability of existing space in 2020. Take-up of speculative developments and second-hand units have experienced high demand, leading to a large proportion of vacant stock being absorbed."

Tom Bridgman

Principal, Investment

INVESTMENT MARKET IN BRIEF

The strength of the distribution occupier market continues to underpin considerable levels of investment activity. Total volumes for distribution warehouses amounted to just under £5 billion across the UK during 2020, 32% up on the five-year average, with 58% committed during the final quarter of the year.

"With the lack of supply in the occupational market we expect further rental growth. Investors will continue to be attracted to the comparatively long leases that the sector offers, and we therefore expect further yield compression."
Should you wish to discuss any details within this update please get in touch
Download a PDF of the full report

This report has been prepared by Avison Young for general information purposes only. Whilst Avison Young endeavours to ensure that the information in this report is correct it does not warrant completeness or accuracy. You should not rely on it without seeking professional advice. Avison Young assumes no responsibility for errors or omissions in this publication or other documents which are referenced by or linked to this report. To the maximum extent permitted by law and without limitation Avison Young excludes all representations, warranties and conditions relating to this report and the use of this report. All intellectual property rights are reserved and prior written permission is required from Avison Young to reproduce material contained in this report.