Prime and secondary industrial rents for large and small sheds in the North West of England have risen markedly between June 2014 and June 2015, according to the latest sector-specific research by Colliers International.
The analysis by the industrial and logistics division of the real estate advisors confirmed that an acute shortage of industrial and logistics space in the region is driving up rental levels in the primary and secondary markets for both big sheds of 100,000 sq ft plus and smaller sheds ranging in size from 10,000 sq ft to 30,000 sq ft.
In the 12 months between June 2014 and June 2015, the average prime rental value of a big shed in the North West rose by 15 per cent from £4.63 per sq ft to £5.31 per sq ft while average secondary rent increased by 14 per cent from £3.56 per sq ft to £4.25 per sq ft.
Prime rental values for big sheds in Greater Manchester and Warrington jumped by 16 per cent to £5.50 per sq ft from £4.75 per sq ft, in Liverpool by 17 per cent from £4.50 per sq ft to £5.25 per sq ft and in Lancashire by 11 per cent to £5.00 per sq ft from £4.50 per sq ft.
In the secondary market for big sheds, Manchester witnessed a 20 per cent rise from £3.75 per sq ft to £4.50 per sq ft while those in Liverpool jumped 14 per cent from £3.50 per sq ft to £4.00 per sq ft.
Colliers’ figures for the big shed secondary rental market in Warrington and Lancashire showed increases of 20 per cent and 23 per cent to £4.50 per sq ft (£3.75) and £4.00 per sq ft (£3.25) respectively.
The prime rental market for small sheds in the North West witnessed an eight per cent rise in rent per sq ft from £5.69 per sq ft in June 2014 to £6.13 per sq ft in June 2015.
There was a similar eight per cent hike in this market in Manchester from £6.00 per sq ft to £6.50 per sq ft while Lancashire saw a 10 per cent jump to £5.75 per sq ft from £5.25 per sq ft and in Warrington the rental level increased by eight per cent to £6.50 per sq ft from £6.00 per sq ft.
In the year to June 2015, the secondary rental market for North West small sheds rose by 13 per cent to £4.38 per sq ft from £3.88 per sq ft;