According to Lambert Smith Hampton (LSH), 2016 was one of the industrial and logistics property sectors strongest years to date. The property take-up in the UK totalled 99.2m sq ft in 2016, which is up 3% on 2015 and 6% above the five-year annual average. One of the greatest contributors to this increase is Amazon, accounting for more than 20% of the logistics take-up.
Surprisingly, LSH found that the EU Referendum had little effect on the sector, as rental growth continued. Steve Williams, Head of Industrial and Logistics at LSH, said: “Reflecting on a tumultuous 2016, it is remarkable just how strong the year turned out to be for the UK industrial and logistics sector. Rental growth not only continued, it accelerated. Logistics take-up surged to a new record and pricing in the investment market stands higher now than it did before the Referendum.”