Scotland’s industrial sector continued its strong run into mid-2021 as second-quarter take-up hit its highest quarterly total in nearly five years, according to CoStar’s latest Scotland industrial review.
The country’s vacancy rate is again trending downwards, owing to positive net absorption, few deliveries and demolitions of obsolete stock. Rent growth is accelerating as a result.
Such market dynamics have drawn a response from developers and more speculative construction is on the way, albeit on a relatively limited scale. CoStar’s Base Case forecast scenario expects the market to easily digest the new supply.
Investor sentiment towards the industrial sector is at an all-time high. Scotland’s broadening buyer pool and recent price movement are indicative of the weight of capital chasing warehouse assets. Transaction activity continues to be limited by a lack of suitable opportunities, however.
This report and image were supplied by CoStar.
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