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The logistics market in Scotland



The logistics market in Scotland


The supply of warehouse space in Scotland for units over 100,000 sq ft now totals 1.36m sq ft across seven units, marking an 11% decline over the past six months, which indicates that the region is past the peak in vacancy. Based on the five-year average annual take-up, there is 1.72 years’ worth of supply in Scotland. The five-annual take-up for Grade A space is currently around 320,000 sq ft. With no Grade A supply available, occupiers must resort to BTS options or settle for smaller warehouses. 

The existing supply consists entirely of lower-quality units, with 42% being Grade B and 58% being Grade C. The recently completed Belgrave Logistics Park was the only Grade A building available, which has now been leased – Savills represented the tenant. Savills’ requirements database indicates that tenants are increasingly concerned about power and energy costs, driving demand for buildings with higher sustainability credentials. However, most warehouses in Scotland do not meet the desired EPC Grade B standard, necessitating significant upgrades to satisfy occupiers’ needs. 

Of the seven units currently available, three units are within the 100,000–200,000 sq ft size band and four are within the 200,000–300,000 sq ft size band. 

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