Law change ‘to fuel speculative logistics building’

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The amount of speculative warehouse and logistics centre building in the UK will increase as a result of a change in legislation next year, it is suggested.

From October 2013, such sites will be provided with exemption from empty property rates and experts have predicted there will be a spurt in new construction as a result.

Speaking to Logistics Manager about the alteration in the law introduced earlier this month by chancellor George Osborne in his 2012 Autumn Statement, David Jones of GVA suggested that more warehouses will be built as the move “will remove a hurdle to developers concerned about the rates obligations they will face on more speculative development”.

Andrew Griffiths of ProLogis added that it is looking into the possibility of speculative development, as there is a shortage of facilities within the south-east.

However, developers and landlords with existing vacant buildings face continuing to be charged 100 per cent rates.

Recent figures indicated performance in the European logistics property sector remains strong, with relatively high levels of take-up recorded over the third quarter of 2012, despite the economic crisis in the eurozone.