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Obsolescence to hit UK secondary logistics rental growth

Despite solid take-up the industrial vacancy rate has risen to a 10-year high, which reflects occupiers shifting into new buildings at the expense of the secondhand market. We expect that dynamic to continue and a further small rise in vacancy will push all-industrial rental growth down to just under 3% by end-26. But strong demand for new, technologically advanced buildings means vacancy rates for prime assets will remain low, which will support rental growth of close to 5% y/y for that segment over the next couple of years.

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