Our Industrial & Logistics Insider report provides expert comment on the latest occupier and investment trends, along with quarterly data and analysis.
Key findings from our Q2 2023 report indicate that:
- Prime yields have flattened in London and the South East, which remained at the Q1 2023 rate of 4.50%.
- The average UK industrial total return for 6 months up until the end of June 2023 reached 2.8%, which was largely driven by the sector’s 7.6% rental growth (MSCI).
- There was £3.1 billion in UK industrial investment volume across H1 2023. Despite being a 63% decrease from H1 2022 it represents 5% above the pre-Covid average.
- Foreign investment into UK Industrial & Logistics has grown as a proportion of sales, as US funds continue to dominate, most notably Blackstone.
- Take-up of industrial property over 100,000 sq ft reached 4.6m in Q2, which brings H1 to 11.4m. This represents a 52% decrease year-on-year.
- Subleasing opportunities for big box spaces increased to 5.3m sq ft. Supply to the market increased to 34m in total, however this is mostly made up of second-hand units. Construction of new units has slowed but is forecast to increase in 2024-2025.
- The manufacturing sector has had a strong quarter with take up from a diverse range of companies, most notably from the automotive industry.
To read more, download the full report below.
