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Posted on April 28, 2009

Freight forwarders and logistics providers are benefitting from the decline in the construction industry; developers are willing to offer flexible terms to logistics tenants in order to attract them to use the huge amount of warehouse space which was built on a speculative basis.  The worst area for over supply is the north-east and north-west of England, and freight forwarders are finding that they are able to negotiate far better and more flexible deals than was the case a few years ago.  Some recent research suggests that rental levels will fall by about 7% this year, and this can only be to the advantage of companies involved in the forwarding and logistics industry, who are more accustomed to ever-increasing costs.

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