New industrial market research from Jones Lang LaSalle shows that occupier take-up across the West London and Thames Valley market area in 2011 hit a 17 year high with some 6.1 million sq ft taken up. This was 45% up on 2010 and 90% higher than the 2009 recession.
In the Thames Valley markets, this was boosted by two large pre-lets in Reading involving Tesco (950,000 sq ft) and the Brakes Group (207,000 sq ft).
The availability of good quality Grade A industrial and warehouse floorspace fell by 41% over 2011 to stand at 1.5 million sq ft at the end of the year. At the end of 2011, only 12% of total availability was in Grade A premises.
Against this background, prime rents were mostly stable but nudged up in Park Royal, Slough and Reading.
The report highlights the government’s on-going review of its aviation strategy which could have important implications for Heathrow and other airports, and hence on industrial and warehouse property markets. A draft aviation strategy paper had been due in March 2012 but will now be published in the summer.
Jon Sleeman, Research Director in the Industrial and Logistics team and Jones Lang LaSalle commented: “Our research shows the resilience of the Western Corridor industrial and warehouse markets. We wait with interest the outcome of the Government’s aviation strategy review which could have significant long-term implications for industrial and warehouse markets around Heathrow and potentially in other airport locations.”