Access our interactive rents maps showing the change of prime rents, secondary rents and land values across more than 100 locations in the UK & Ireland.
These maps relate industrial & logistics property and assets such as warehouses and distribution centres.
Key findings:
- Average land value growth in England accelerated dramatically and posted a 40% increase y/y in July 2021 as investors compete for sites.
- While this is underpinned by strong rental growth, investor appraisals are also supported by a continuation of future expected demand, coupled with further rental growth and moderate yield compression over the coming quarters.
- Average prime rental growth for logistics units larger than 100,000 sq ft in England posted a positive 13.5% y/y in July as the provision of new schemes, accompanied by a low supply environment, is prompting a step-change in rental values. Similarly, smaller units of more than 10,000 sq ft, recorded a 14.5% rental growth.
- We expect rental growth for prime and secondary units to continue due to a combination of strong tenant demand, dwindling supply, a rise of CPI and the shortage of construction materials which, in some cases, is challenging the delivery of design and build, and speculative schemes.
