Thu, 08/02/2024 - 12:00
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Industrial & Logistics Update Q4 2023

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 Q4 2023 report indicate that:

  • The UK industrial total return in Q4 2023 was 0.5% q/q, bringing the FY2023 return to 5.1%. The main force behind the sector’s positive returns continued to be rental growth, which helped sector capital growth recover to marginally positive territory (+0.1%) over 2023 (MSCI).
  • Over Q4 2023, £1.8 billion was invested into the UK industrial sector. This was a 24% decrease from the same period in 2022.
  • With prime yields broadly stable and debt costs beginning to fall, there are reasons to be optimistic that liquidity will return for industrial investors in 2024.
  • Take-up of industrial property over 100,000 sq ft reached 8.3m in Q4. 25.2m sq ft was taken across 2023 in UK big box space.
  • There is a chronic lack of speculative development across the country, leading occupiers with more financial stability to develop their own space. Logistics occupiers have also taken advantage of subleasing opportunities in well-located areas.
  • There is 12.5m sq ft being speculatively developed across the UK, predominantly in the Midlands. This is equivalent to around half of take up in 2023 with increased pressure on existing supply to carry the brunt of occupier demand. This is likely to result in postive rental growth in 2024.
Industrial & Logistics Update Q4 2023