Glenny's Eastern M25 Data Shows Industrial and Office Supply Rising but Demand Remains Higher

In November 2024 the property consultancy Glenny reported that industrial space available in the Eastern M25 had climbed to 15.8 million sq ft, the most since 2014, yet demand still exceeded supply. The area it covers runs from North London and Hertfordshire through East London and Essex to South East London and Kent.

John Bell, Glenny's head of business space, said the rise began with newly completed developments but over the preceding six to twelve months had been boosted by second-hand space coming back as occupiers upgraded or downsized. At the end of the third quarter of 2024 available stock was made up of 9.8 million sq ft of second-hand space plus 6 million sq ft of newly built or refurbished stock, still 35% under the 2012 high of 24 million sq ft. Only 1.8 million sq ft was grade A. Demand topped 28 million sq ft in 2021, then settled a little above 22 million sq ft, against just 9.1 million sq ft back in 2012.

The shortfall had returned to pre-pandemic levels, but varied by size: units under 25,000 sq ft were oversupplied, whereas larger units remained scarce. Bell said take-up had slowed in some locations while new space was still short in others. Big-box take-up was slightly down for the first three quarters, but requirements stood at nearly 10 million sq ft. Year-to-date take-up was 3.8 million sq ft, and he forecast 5 to 5.5 million sq ft for the year, an improvement on the previous two. Occupiers still favoured new and refurbished premises, and weaker ESG-rated space might take longer to let.

In offices, take-up reached up to 800,000 sq ft over the first three quarters, with 1.2 to 1.4 million sq ft expected for the year, compared with 1.1 million sq ft in 2023. Docklands was strongest: Revolut took 113,900 sq ft at 30 South Colonnade, E14, the first 100,000 sq ft letting there since the pandemic. Only 1.75 million sq ft of top-quality space was available, 80% in Docklands and East London, and scarcity elsewhere had pushed up rents in isolated spots.

Source: Glenny, originally published on The Landsite (14 November 2024)