Insight

Is the sheds sector in a bubble?

By 2018-05-17T05:00:00

Sheds bubble

With demand still strong and good product scarce, fears are mounting of a bubble in the rapidly growing industrial sector.

However, over the past few years, the ugly duckling has turned into a swan. Occupier take-up levels and investment volumes have soared as new entrants have piled into the market in their droves.

Research from BNP Paribas Real Estate shows industrial and logistics take-up in Q1 this year reached a record-breaking 9.8m sq ft – the highest first quarter on record. In the same period, investment volumes surged to £1.96bn – 17.1% up on Q1 last year and another first-quarter record.

But are these numbers sustainable or is the sheds sector in a bubble close to bursting?

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