LETTING activity in the UK industrial market increased 800,000 sq ft to 6.9m sq ft in the first quarter of 2011, according to DTZ Research’s Property Times UK Industrial report, which covers the market for properties over 50,000 sq ft. Despite the increase in activity, overall take-up was down from the 7.3m sq ft seen in the first quarter of 2010.

The report revealed that retailers and manufacturers dominated the take-up of industrial space during the quarter, accounting for over 90% of all activity.

The report also stated that the total availability of industrial space fell to 182m sq ft at the end of the quarter while Grade A stock continued to fall, reflecting the continuing absence of new supply.

Secondary grade space saw the largest reduction during the quarter, falling by around 6m sq ft, largely due to the lack of availability of Grade A buildings.

The trend for consolidated distribution hubs witnessed in 2010 continued, especially in the North West.