Our Industrial & Logistics Insider report provides expert comment on latest occupier and investment trends, along with quarterly data and analysis.
Key findings from our Q4 2022 report indicate that:
- Take-up of industrial property over 100,000 sq ft reached 8.6m in Q4, predominantly through new units. 2022 take-up was the third highest on record, but down y/y.
- Supply is low at c.17m sq ft for 2023. Based on 2022 demand this would only meet the first half of this year.
- Logistics demand for space has softened, but the sector's versatility means high take-up continued with retail warehousing and the resurgence of manufacturing.
- UK industrial investment reached £12.5bn in 2022. Only £1.4bn was transacted in Q4, down 50% on the 10-year average for the quarter.
- Prime yields reached 5% in Q4 2022, up 150 bps since June.
- Challenges to liquidity are expected for 2023, however there is reason to be optimistic. Pricing evidence from Q4, BoE guidance of inflation easing, and continued lending to businesses able to demonstrate quality all provide hope for a positive year of industrial investment.
