According to King Sturge's Property Predictions for 2011, distribution occupiers face significant reductions in tenant's inducement packages and some upward pressure on headline rents in certain locations.
This is due to the slow almost negligible development of speculative warehousing in the last year, as well as the increase in demand to service internet operations both traditional (multi-channel) retailers such as John Lewis and pure play (internet only) retailers such as ASOS, Gap Direct, Amazon, Ocado and Tesco.com. Supply pressures are most notable in London and the South East and further afield in some "big box" logistics hotspots.
As rent levels increase and shortages become more noticeable King Sturge says there maybe a "very limited number of speculative "big box" units built in the Midlands/Golden Triangle area.
Copyright: Centaur Communications Ltd. and licensors
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