Our Industrial & Logistics Update provides expert comment on the latest occupier and investment trends, along with quarterly data and analysis.
Key findings from our Q3 2023 report indicate that:
- The average UK industrial total return for 3 months up until the end of September 2023 reached 1.7%. The main force behind the sector’s positive returns continues to be rental growth (MSCI).
- Prime yields have remained flat in London and the South East since the beginning of the year at the rate of 4.50%.
- There was £1,666 million in UK industrial investment volume across Q3 2023. This was a 53% decrease from the previous year.
- US investors with high liquidity continue to dominate market share as securing debt remains challenging.
- Take-up of industrial property over 100,000 sq ft reached 5.04 m in Q3, representing a 41% decrease on the 10-year Q3 average.
- Subleasing opportunities for big box spaces increased and now exceeds 6m sq ft. Supply to the market increased to 39m sq ft in total, much of which will require improvement. Construction starts have reached their lowest this quarter since the pre-pandemic period.
- The Midlands has continued to outperform the rest of the UK in big box demand, which is also where the largest regional supply lies. This supply would still struggle to support the kind of demand seen last year and BNP Paribas Real Estate forecast rental growth.
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