The sector is being hammered by business failures and cutbacks in capital expenditure. This is reflected in a growing supply of industrial floorspace, which, according to new figures by King Sturge stood at 190 million sf in August, a 5.1% increase in six months.

The worse hit part of the market was large units of 100,000 sf or more which saw an 9.3% increase in availability to 43 million sf but more worrying was the 8% rise in the availability of new space. Hardly surprising, then, that speculative development should have fallen over the period to only 64 new schemes in the whole of the country.

Despite painting a bleak picture, the report ends on a more positive note. It notes: "Overall the UK economy is expected to see growth of 1.5% with stronger growth next year. Manufacturing output is expected to improve next year and business investment is expected to pick up. Against this background, user demand should improve next year."