^{▲ Prologis Park, Marston Gate}

Supply

■ The supply of warehousing over 100,000 sq ft in the South East and within the M25 fell in every quarter in 2016 and now stands at 3.7m sq ft across 24 separate units.

■ Of the 24 units on the market 46% are classified as Grade B, equating to 1.6m sq ft. Grade A supply has also increased as speculatively constructed units reach practical completion and are added to our supply statistics. Examples include DC2 at Prologis Park West London where 113,000 sq ft has been added to our Grade A supply.

■ Examining supply by size range shows that 88% of all units currently on the market are sub 200,000 sq ft with just three units on the market over 200,000 sq ft, the largest being the speculatively constructed Angle 340 in Andover.

^{Source: Savills Research}

Take-up

■ For the year 2016 take-up reached 5.1m sq ft, 32% above the long term average and almost 2m sq ft higher than 2015.

■ Whilst 2.2m sq ft of this demand was by Amazon in one unit at Tilbury it should be noted that deal volume was also above the long term average as we tracked information on 17 separate transactions throughout the year.

■ The lack of supply in the higher size ranges also ensured that 86% of all deals were under 200,000 sq ft in 2016, compared to just 63% in 2015.

■ The lack of supply and strong occupier demand has seen occupiers prepared to pay increasingly higher rental levels. Indeed the average achieved headline rent in the SE & M25 increased by 7% to £7.21 per sq ft.

^{Source: Savills Research}

Development Pipeline

■ There are currently six units either announced or under construction in the SE & M25 which total 976,510 sq ft. By size these are DC9 at Marston Gate (275,000 sq ft), London Gateway (165,000 sq ft), Thurrock 162 (162,508 sq ft), Island Road Reading (130,000 sq ft), Mountpark Southampton (128,00 sq ft) and South Central (116,000 sq ft).

■ The majority of this stock will complete in the third quarter of the year when DC9 at Prologis Park Marston Gate at 275,000 sq ft reaches completion.

^{Source: Savills Research}