Data shows stronger distribution property market

Published: February 22, 2012

Segro, the logistics landlord, has reported another fall in the proportion of empty floorspace in its property portfolio, as the distribution property market continues to harden.

The landlord - currently involved in a £1.6bn asset disposal programme - reported that the proportion of empty floorspace fell to 91. Per cent at the end of December 2011.

The latest figure marks a sharp acceleration in a fall that began twelve months ago. The vacancy rate was 12 per cent in December 2010, falling to 11.4 per cent in June 2011.

Segro also reported a 4.2 per cent fall in the value of the net value of its property assets, a reduction coming almost entirely from a fall in the value of non-core assets, indicating that the industrial and distribution property market remains relatively strong.

Simon Wood, partner at specialist logistics property consultancy B8 Real Eastate, said: “The logistics and distribution property market has strengthened during 2011 and continues to be active. We are seeing a steady flow of new instructions, both for new developments and for investment sales.”