High inflation and interest rates are financially squeezing consumers, who are spending less, thus reducing demand for goods and therefore hitting occupiers. This is creating a perfect storm for developers and investors, who are also being affected by the negative effects of rising interest rates and inflation in many of their operating costs.

With inflation and interest rates hitting hard, many are simply refusing to guess how this will play out in the short, medium and long term for occupiers, developers and investors in industrial and logistics real estate. But, as always, there is little need for any crystal ball gazing. For the most part, the prognosis is actually fairly simple: Those who are well-capitalised, ambitious and creative still have plenty of opportunities to flourish.

A slowing market

In contrast to the buoyant pandemic market, there is now a slowing logistics occupier market. For example, occupier take-up in the UK prime logist