Iain Davidson’s article, Colliers Director of Industrial & Logistics in Scotland.
The industrial and logistics sector in Scotland has experienced a resistance of 12 months. With a total totality or 5.7 million square feet, which represent, an year -on -year decrease of 9.5%, we have witnessed the occupants that continue to face the growing operational costs and the shortage of new -construction shares of tight size to move.
Small and medium enterprises (SME), which constitute 99.3% or all private sector companies in Scotland and contribute 42.4% or the billing of the private sector (Scottish government, March 2023), are the backbone of our economy.
Connect-70
The storage demand remains robust in the key sectors that include food and drinks, engineering, services, manufacturing and logistics. The activity is predominantly concentrated in small to medium units, but continuous larger agreements to reach the headlines, including the main remakes, the 54000 square feet group of rent in Belgrave Point, Bellshill; Micheldaver that takes 73,000 square feet in Connect-70, Bellshill; Royal Mail has 129,000 square feet tasks in Gateway House, Livingston; The Scottish power leased 100,000 square feet in two units in Newhouse and Eurocentral; And James Fisher Defense Tok 63,000 square feet in Canmoor’s Westway, Glasgow Airport.
The availability of industrial units in all grades and sizes stood at 9.6 million square feet in the fourth quarter of 2024, 1.6% lower year -on -year and 13% below the annual average of 10 years. This translates into a vacancies of 3.4%, a reduction in long -term gelega or 4.3%.
For the occupants who are looking for greater units to occupy, the options are still limited, since the high construction costs and the indebtedness rates have turned out that developers re -evaluate their speculative plans, which results in a thin pipe that falls shorts shorts shorts shorts shorts short projects of projects. In this context, rentals have continued to increase, with average rentals in all grades that increase by 3.3% and/and 2024 (MSCI) and anticipate that the income will be complicated to the Intreina of 2025.
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