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Research - OCTOBER 7, 2021

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U.K. industrial & logistics sector continues to break records

by Andrea Zander

Investment volumes for industrial and logistics space in United Kingdom reached £3.0 billion (€3.5 billion/$4 billion) in third quarter 2021, the second highest third quarter on record, according to Savills.

To date, transactions in 2021 now total £10.8 billion (€12.7 billion/$14.7 billion), which means that capital invested has already surpassed 2020’s total of £10.2 billion (€12 billion/$13.9 billion) and, as a result, the firm anticipates figures could exceed £12 billion (€14 billion/$16.4 billion) by the end of this year.

Primarily driven by the strength of the occupational market, take-up hit 13.2 million square feet in third quarter. A critical lack of supply, with a vacancy rate of just 3.62 percent, has seen quoting rents grow by as much as 20 percent in key locations. Consequently, values have continued to rise with Savills prime yields contracting further to 3.25 percent.

While 2020 was dominated by portfolio deals, the first three quarte

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