Q2 Key Findings:
- Occupier demand continued to recede during Q2 2023, totalling 6.3m sq ft across 45 transactions, a fall of 26% QoQ, and the lowest quarterly value since Q1 2020.
- Despite this drop off in demand, over 7.5m sq ft of immediately available stock is currently under offer, and the number of enquiries and requirements has continued to improve.
- Demand dynamics continue to evolve, with a noticeable absence of large modern stock being acquired by 3PL occupiers, a key proponent of logistics demand.
- Availability constraints continue to ease as total availability exceeded 60m sq ft for the first time since Q1 2021, reaching 63.6m sq ft.
- Investment volumes showed signs of recovery following H2 2022 fall-out and subsequent re-pricing. Total volumes reached £1.6bn, whilst still at relative lows, this value represents a recovery on the Q4 2022 and Q1 2023 values, and is accompanied by improvements in sentiment, and the return of price stability.