Industry Property Review of the Year

December 28, 2008 by admin
Filed under: Economic Outlook

What a difference a year can make!
Like every property market, the industrial/warehouse marketplace has had a particularly challenging year. The “warm and cosy” conditions that we had become accustomed to have turned very cold and brittle.
The statistics tell the tale well. To add to the difficulty in the market place, there is an increase in the supply available. And the figure is likely to increase next year dependent on the outcome of the administration of Woolworths. The new development marketplace for industrial buildings has virtually ground to a halt with credit crunch restricting the supply of money into this market. At present there are no new industrial/warehouse building being built and it is unlikely to change soon.
The Government has not helped matters by introducing empty rates payments on vacant buildings which has put occupiers and investors under more financial pressure. The recent minor changes announced by the Government will have little or no effort. The increased overheads have resulted in the demolition of buildings to avoid empty rates payments. All this gloom put to one side, there is still a market and the picture is not as miserable as people think at the first place. Notable deals for the year have seen some activities. As to the future, 2009 looks as if it may be a more difficult trading period than 2008.

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