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Occupier Demand Flags in Industrial Sector

LONDON-Occupier demand in the industrial sector is slowing, but a shortage of stock is helping to sustain rental values, according to new research from Atis Real Weatheralls.

By Graham Parker | Updated on March 24, 2003

LONDON-Occupier demand–especially for smaller and medium sized units–is slowing in the industrial sector according to new research from Atis Real Weatheralls. The firm says market caution, slowing demand and ever-increasing decision making periods have resulted in landlords increasing lease flexibility and occupational incentives.

Nigel Rowe, head of industrial property at Weatheralls said: “Fortunately, continuing low levels of stock has ensured a semblance of demand and supply balance in most areas, ensuring rental stability. ” But he warned: “ With little pressure on rents to grow over the next few years, we are forecasting an average increase of 3.2% per annum across the UK until 2007, although a fall in national and international confidence could trigger a release of second hand property causing market saturation.”

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