Demand for industrial property has fallen to its lowest level since early 2009, with Scotland experiencing a “disappointing” decline in the first quarter of the year, according to a new report.
Occupiers took up 250,000sq ft of property in Scotland during the first three months of the year, which DTZ said was less than 50 per cent of the quarterly average.
Peter Fraser, senior surveyor at the firm, said just two lettings above 50,000sq ft took place during the quarter, the largest being 181,000sq ft of space at Grangemouth, which has been taken by drinks giant Diageo.
Despite the lack of activity at the larger end of the market, Fraser said demand for smaller industrial units was “relatively good”.
He added: “There appears to be a consensus amongst occupiers that the economic climate is reaching its lowest point. Companies are therefore projecting business growth and, with opportunities to secure good deals, this confidence is converting into relocations to more suitable accommodation.”
For the UK as a whole, DTZ found that industrial take-up in the first quarter fell by 1.9 million sq ft to 5.8 million sq ft, the lowest level since the second quarter of 2009 and almost 20 per cent below the quarterly average.
Rental levels were largely unchanged from the fourth quarter of 2011, but the firm said the gloomy economic outlook meant rental growth forecasts had been revised down.
Search for a job
Search for a car
Search for a house
Weather for Edinburgh
Thursday 23 May 2013
Temperature: 5 C to 10 C
Wind Speed: 24 mph
Wind direction: North
Temperature: 5 C to 13 C
Wind Speed: 16 mph
Wind direction: North east