Employment implications
"The MOD spent £52.8 billion and £54.2 billion on defence in 2022/23 and 2023/24, respectively. Of that, close to £30 billion was on the procurement of equipment and services"
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Forecasting employment growth
"Looking ahead, if we assume that employment keeps pace with the increase in expenditure, we can calculate estimated employment growth based on the increase in defence spending as a percentage of GDP"
Impact on the industrial and logistics sector
"Employment growth is set to drive significant expansions in industrial and logistics demand"
How will this impact UK regions differently?
"Given the potential flow of demand over the next decade, which regions can expect to see a rise in take-up? Like many manufacturing industries, the defence sector benefits from significant agglomeration economies. To examine this, we can look at breakdowns of employment by region"
The infrastructure demands of modern defence
"Sam Quellyn Roberts, Director of EMEA Industrial & Logistics – Occupier Markets, discusses the complex needs of modern defence occupiers and the difficulty in fulfilling these requirements"
Policy implications
"The scale and ambition of the SDR should not be called into question; like much of the Western world, the UK has reacted to an increasingly conflict-prone international order. As experts in logistics real estate, we would note several key policy implications that the government will need to address as part of the SDR’s implementation"
Key takeaways
"The impact of rising defence spending will have far-reaching consequences on UK and European property markets"
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Japan Logistics - September 2025
"The logistics sector has been resilient despite the large supply seen in recent years and is positioned for a brighter outlook as supply begins to ease. Investment sentiment remains strong, with high-value transactions making headlines over the fi rst half of 2025. The anticipated slowing in new supply after 2025 will give the logistics market further momentum for absorption. Additionally, logistics operators have been incorporating new technologies to enhance operational effi ciency to address labour shortages, further strengthening the sector’s resilience over the longer-term outlook."
The logistics market: National Overview
"Robust take-up fails to dent national supply picture"
The logistics market in London and the South East
"Nearly 70% of available supply is Grade A quality"
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