But overall performance for the sector has been dragged down by the South East which has hit badly by the collapse in confidence among technology companies early in 2001.

But in the key West Midlands market - traditionally the powerhouse of the UK industrial market, IRE detects an upturn over the past three months with Argos taking a 563,000-sf distribution centre in Burton-on-Trent; Sainsbury's taking 650,000 sf at hams Hall near Birmingham and Asda Wal-Mart taking 700,000 sf at Magna Park in Leicestershire.

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