The supply of Scottish warehouse space for units larger than 100,00 sq ft has fallen to 5.70% as demand outweighs the supply.
Savills latest Big Shed Briefing found that the total available supply now stood at 1.25m sq ft across nine separate units in Scotland.
The estate agent group noted due to a lack of supply of new warehouse space more than 100,000 sq ft, the current available space is made up entirely of second hand stock.
Grade A rents for industrial units above 100,000 sq ft in Scotland have increased by 13% this year to £6.50 per sq ft.
Savills expects this could rise further as demand for this type of space remains competitive.
In terms of take-up in the first half of this year, the report revealed that it reached 550,000 sq ft – 22% down year-on-year – and was achieved through a single transaction that saw HarperCollins commit to a build-to-suit unit at Nova Business Park in Glasgow.
Occupiers looking to acquire space will have limited choices of lower quality and smaller sized units due to the shortage constraints of larger sized, high quality properties.
Ross Sinclair, industrial director at Savills Glasgow, said: “The Scottish industrial market is witnessing a substantial supply and demand imbalance for good quality stock over 100,000 sq ft which, due to a stagnant development pipeline, looks set to continue.
“While this has helped to keep the vacancy rate down as well as reducing incentives and increasing rental growth across the wider markets, only new speculative developments coming to the market will help to ease this critical shortage of stock.”
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