The national supply of available industrial and logistics property fell during the first quarter of 2012, the first decease in supply since the second quarter of 2010, according to research from BNP Paribas Real Estate, the international property adviser.
Nationwide the supply of industrial and logistics property fell by 1.1 million sq ft with 84% of supply being second hand.
Take up during Q1 totalled 6.79 million sq ft, up from 5.33 million sq ft in the fourth quarter of 2011 and at a similar level to the figure for Q1 2011. The vast majority of the take up was of second had properties, totalling over 5 million sq ft.
The Midlands accounted for the majority of the transactions in Q1 with take up in the region totalling 2.48 million sq ft, 36% of the total national figure.
Kevin Mofid, an associate director at BNP Paribas Real Estate, says: "The fall in the supply figures has been on the horizon for some time as we have been witnessing an increasing polarisation of the market with the availability of brand new stock dwindling. As occupiers are being left with few opportunities to acquire new space the supply of better quality second hand stock is also falling."
Head of industrial agency at BNP Paribas Real Estate, Ranjit Gill says: "Due to the falling supply of existing, good-quality properties, occupiers are having to look at D&B options. To make such deals stack up tenants will have to face up to the realities of longer leases and higher rents."