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Logistics rents set to rise in 2017

Logistics rents set to rise in 2017

UK logistics rents continued to increase throughout 2016 – and will keep on rising, according to Colliers International.

The global property consultancy blames constrained supply and strong levels of demand from online retailers such as Amazon.

Average prime rents for distribution product increased by 3.3% and 3.9% for multi-lets year on year, with Park Royal establishing a new record rent at £17.25 per sq ft.

Colliers International forecasts average industrial rents to further rise by 2.2% annually until 2020, making industrial property the strongest-growing commercial property asset class.
Len Rosso, Head of Industrial and Logistics at Colliers International, said: “Despite economic uncertainties, constrained supply and strong levels of take up in the UK industrial property sector is ensuring that it continues to perform better than any other major property asset class in terms of both rental growth and yield impact.” 

Prime headline rents for ‘big sheds’ rose across most of the UK in 2016 by an average of 3.3% (to £6.31 per sq ft), demonstrating a return to pre-recessionary levels.
The highest industrial rental growth in the last 12 months was recorded in:

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