Insights | Edition 3
Industrial & Logistics Navigating uncertainty in industrial & logistics markets How adaptability and innovation are shaping the future for investors and occupiers In today’s fast-moving economic landscape, uncertainty is the only constant. Global and domestic forces are reshaping the playing field for investors and occupiers, with every headline and policy shift sending ripples through the market. Fluctuating interest rates and persistent inflation is significantly impacting confidence levels. High borrowing costs have further slowed speculative development, prompting investors to be more cautious. Yet, even as caution rises, prime rents continue to grow, just at a gentler pace. Landlords are getting creative, offering more generous incentives, especially where supply and demand are out of sync. Occupier requirements are shifting, with growing focus on strategic needs such as supply chain resilience, automation, ESG compliance, rather than mere expansion. There is a strong demand for Grade A energy efficient, and ESG-compliant distribution space, whilst secondary and less compliant assets face greater challenges and value pressure. Demand is characterised by the surge of transactions from Chinese firms such as JD.com, Supersmart and Top Cloud Logistics, who have taken over 2 million sq ft this year in expansion moves. Supermarkets are making bold moves too, with Waitrose’s 360,000 sq ft letting at Mount Park Bristol, Tesco’s 620,000 sq ft transaction at Aylesford and Marks & Spencer’s 1.3 million sq ft national distribution centre at DIRFT to support their food businesses.
Meanwhile, the defence sector is poised for growth, fuelled by global tensions and political uncertainty. The Strategic Defence Review signals a push for increased investment, with a target of 3.5%.
transactions. And with the Autumn statement from Rachel Reeves on the horizon on 26 November, it is rumoured to bring new wealth taxes and debt measures, uncertainty is set to linger, potentially delaying decision making.
The development pipeline is experiencing a slowdown, with fewer new projects coming forward due to higher construction costs and political headwinds. This has led to elements of supply constraint in some regions and over supply in others. Vacancy rates have risen due to slower take-up and, especially for older spaces are taking longer to convert into
In this climate, adaptability is everything. investors and occupiers who stay informed, embrace innovation, and put ESG at the heart of their strategy will be best placed to thrive. The challenges are real, but so are the opportunities, for those bold enough to seize them.
Fisher German team support Orapi’s strategic move to Wednesbury Our industrial & logistics agency team has successfully facilitated the move of an industrial supplier in the Black Country which hadn’t relocated for over four decades to continue its growth and safeguard jobs. We have secured new premises for Orapi Applied Ltd, a world-leading UK manufacturer of specialist chemicals and paint shop consumables, at Britannia Point in Wednesbury. We were appointed to search for state-of-the-art accommodation to replace Orapi’s ageing premises in Smethwick, while incorporating numerous operational needs including significant power supply and to continue the employment of key members of staff.
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