How concerning is the decline in industrial take-up?

The sharp drop in industrial take-up in recent quarters may be a sign that the sector is becoming more vulnerable to changes in economic conditions. Indeed, the decline has coincided with a 25% drop in online retail volumes since the end of 2020. However, sales look to have turned a corner and we expect they will rise over the next year or so even as overall consumption flatlines. That will support industrial demand and prevent rental growth from falling below 3% y/y.