The record low levels of availability have seen developers look to break ground on a series of speculative developments, which will be completed in the second half of the year, C&W says.

Although total market size remained unchanged in the second quarter of the year at 1.89 million sqm, due to increase in vacancy, net absorption was negative for the first time since Q3 2013, totaling 20,650 sqm, the report says. Vacancy rate currently stands at 9.7% showing a minor increase from the all-time record low Q1 2016 level.

Rents have stabilized and lease terms are returning to pre-crisis levels, incentives are being withdrawn and rental increase is anticipated in the short-to-medium term, the report says.

Demand in the second quarter saw 92,070 sqm of transacted space. Demand was reportedly driven by renewals (65%), with the vast majority signed in logistics parks. Pre-leasing accounted for 19% of the total demand, the report said.

Four schemes extending to 57,000 sqm of logistics space are currently under construction and will be delivered in the second half.