Only 14.25 million sf of this was newly-completed, a rise of 21.5% since last August. And there was only an additional 7 million sf under construction in 82 speculative schemes across Great Britain. Speculative development activity is down since August 2001, when King Sturge recorded 85 million sf under construction in 106 speculative schemes.
Angus McIntosh, Head of Research at King Sturge said, 'Although the level of floorspace immediately available has increased, our survey shows that there is a slowdown in new development. Analysis of our data reveals that, as at the beginning of the year, there was not a single major building under construction which will complete after the middle of this year'.
King Sturge forecasts that rental values will grow by 2% to 3% this year. The firm puts industrial investment yields currently at 7.1% in London, and 8% or more in many other parts of the country.
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