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Occupier and investor demand remains strong across all the sub-sectors with which we and our clients deal:
- urban logistics;
- out of town “big box” storage and distribution warehouses;
- light industrial and industrial estates;
- retail warehousing, retail parks and trade counters;
- car showrooms; and
- self-storage.
Some commentators consider the big box sector might be at or close to oversupply. Together with other factors, this has resulted in a growing focus on urban logistics.
Despite the potential headwind affecting the entire property market and the rising cost of construction, our clients are expecting yields in the industrial and logistics sector to balance out yield shifts in the retail market.
In terms of design there is an expectation that industrial developers will embrace building upwards in order to satisfy demand in the most constrained locations. Multi-storey is fairly well established in Asia and out of town locations in Europe, and seems to be gathering pace in the US. It therefore seems likely to become a more significant feature in the UK market, including in urban and suburban locations.
Maples Teesdale and our clients are key players in this vibrant sector. This includes developers, investors, funders as well as occupiers.