DEMAND for industrial space in the North West and across the UK remains “robust”, according to a new report.

The CB Richard Ellis (CBRE) H1 Logistics Report, reveals that 10.39m sq ft was let across the country during the first half of the year.

The North West accounted for 12% of this total, with the 360,000 sq ft DHL letting at G.Park, in Liverpool, being one of 2011’s most notable transactions so far.

The study says that the availability of units of 100,000 sq ft and above decreased during the first half of the year, and now stands at 31.2m sq ft.

The UK now has just two existing buildings able to accommodate a requirement of over 500,000 sq ft, with design and build transactions likely to become more prevalent in the market as a result.

Retailers once again dominated the logistics market, accounting for 50% of take-up, and investors are keen to secure these opportunities.

One particularly noteworthy example is REEF’s acquisition of B&M Bargains’ building, in Liverpool.

However, despite strong retail take-up, the report says that the outlook for consumer spending could lead to weakening demand later in the year.

Although H1 experienced a decline in total investment purchases of distribution warehouses, total investment activity is in line with the 10-year average. There has been a growing interest in assets providing a short-term income stream.

Rehan Zaman, director of Capital Markets at CBRE North West, said: “Investment activity has very much been focused on core, mainstream locations, although no single region has dominated overall purchasing activity.

“In terms of where investment is coming from, UK institutions and overseas investors were responsible for the bulk of money invested in the sector so far this year.

“Investment demand has been increasingly polarised, with investor interest focused on the prime end of the market, invariably for assets with unexpired lease terms of 15 years and above.”