Publications

- December 1, 2021: Vol. 15, Number 11

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UK logistics investment volumes continue to surge

by Andrea Zander and Marek Handzel

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

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

Primarily driven by the strength of the occupational market, take-up hit 13.2 million square feet (1.2 million square metres) in the 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 prime yields contracting further to 3.25 percent.

Driven largely by private equity backers, Savills notes that overseas investors remain the most active in the mar

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