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Industrial pipeline not a major risk

A record amount of industrial space is currently under construction, which looks poorly timed given the upcoming recession. However, the sector is entering the downturn in a strong position with very low vacancy. And we expect the share of online retail spending – which helped drive the surge in take-up over the past three years – will soon resume its upward trend. That should mean the demand is there to absorb the new space and we still think industrial will be the only sector to avoid a fall in rents this year.

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