Industrial sector showing signs of fragile recovery
Kingston CPC - as either sole or joint agent - has disposed of over half a million square feet of industrial and warehouse floorspace in the first half of 2011. Over 40 transactions have been completed (30% up on similar period of 2010), and range from a small 1,000 sq.ft. workshop to a 140,000 sq.ft. purpose built distribution warehouse.
Andrew Buckman, Agency Partner confirms "the first two Quarters of 2011 have seen an improvement in activity within the industrial and warehousing sector, to the extent that in some regions there is a shortage of good Grade 'A' space. However, this is no more than a fragile recovery as yet, and against a background of USA and Eurozone economic problems, there is no guarantee that the second half of the year will capitalise on a good start to the year.
Over the last three years very little new stock has come to the market as developers have - understandably - been reluctant to speculate. The increase in take up has therefore lead to pressure on rents and especially a hardening of the lease package terms available to tenants".
July 2011