London faces logistics space shortage

London will run out of available industrial space within five months should the current take-up rate continue, according to a report from London First and CBRE. The surge in occupancies has been driven by an e-commerce boom amid the pandemic, with online retailers and food delivery firms thriving. There is short supply of ready-to-occupy units, with just 1.8% of total stock in London and the South East available for rent compared to 6.2% in 2019. Analysis shows that demand for large office spaces remains robust, with transactions over 50,000 sq ft making up 38% of the total take-up in 2021. Nearly three-quarters of those were within newly completed buildings or deals for pre-let space. Richard Smart of CBRE comments: “London continues to hold its allure for occupiers, which has been reflected in the strong uptick in the leasing market at the end of Q4 2021.”

City A.M.