Future Space
Future Space is our annual survey that asks for views on the Industrial and Logistics property sector for the next 12-24 months and beyond. Working in partnership with Savills, we collate responses from key industry players. This includes occupiers across a broad range of sectors, from automotive and grocery to parcel delivery, manufacturers and online-only retailers.
Join Head of Tritax Big Box’s Manchester Office, David Travis, Savills' National Head, Industrial & Logistics, Toby Green, and CEO of the UK Warehousing Association (UKWA), Clare Bottle, as they discuss this year’s survey in the podcast below.
The survey, conducted in Q4 2024, drew a record 330 responses, providing a robust data set. Occupiers comprised ~40% of responses and the remaining ~60% was split between investors, developers and other key industry players.
Occupiers see market conditions as slightly improved compared to six months ago, but continue to face diverse and evolving operational challenges, with the cost of labour now the most significant. The drivers of demand for logistics real estate, meanwhile, are multifactorial and extend beyond pure business expansion. Technology adoption and fleet evolution are strategic priorities, all of which have ramifications for power availability, quality of real estate and ESG.
Investors and developers were more positive than occupiers on market conditions. Power availability is considered a critical issue by both groups, which is unsurprising given the constraints currently faced by the national grid. Investors are more concerned with the overall health of the economy, and developers with the time taken to get planning permission and construction costs.
Transformational year with significant strategic progress and excellent operational performance - Record rental reversion, attractive development pipeline and compelling data centre opportunities Delivering highest total accounting return level since 2021
Tritax Big Box Developments (TBBD) has made a further submission to assist the Secretary of State in making a decision on a Development Consent Order (DCO) application for Hinckley National Rail Freight Interchange (HNRFI), a major strategic rail freight interchange project in Hinckley, Leicestershire. The project, when complete, is projected to generate between £329million and £406million per year in Gross Value Added (GVA) to the UK economy.
Highlights of Tritax Big Box's 2024 FY performance include: - Additional £22.7 million of contracted rent from active management and development lettings - Secured one of UK’s largest 2024 pre-lets - 1 million sq ft to a global leader in e-commerce - £306.2 million of disposals above book value, including £181.2 million of non-strategic assets
