Development activity of industrial schemes is still frozen, as developers are reluctant to launch any projects on a speculative basis without a larger pre-let or BTS agreement.
Modern industrial stock totals 1.8 million sq m, including 416,000 sq m of vacant space.
Vacancy rate increased by 3.4 percentage points during the past half-year and stands at 22.8%.
Demand for modern industrial space fell back significantly in H1 2013; 53,000 sq m was let in total, down by 62% from H1 2012.
In H1 2013 only 22% of the take-up was renewal, a significant change compared to the previous periods when renewals accounted for 50 oreven 60% of the demand.
Rental levels have stabilized, but tenants are in a strong negotiating position.
Source : DTZ (Groupe UGL)