Some UK regional warehouse property is seeing rents rise by as much as 25%, data for a major landlord shows.
Palace Capital, who invest in property outside of London, has completed 12 lease renewals and five rent reviews showing rents marching ahead of landlords’ expectations.
Recent deals including renewals and reviews on 17 assets have shown rents up overall by 25.6%.
The renewals, which have been completed on 12 properties across all portfolio sub-sectors, include the 77,787 sq ft warehouse at Foleshill Enterprise Park in Coventry which is let to Brose Ltd, the major industrial equipment supplier whose clients include Jaguar Land Rover. The landlord secured a more than 30% annual rental uplift on a five year lease from July 2019.
Neil Sinclair, Chief Executive of Palace Capital said: “Through a combination of the quality of our assets and our skilled active management process, we have secured the retention of 12 tenants and at the same time delivered a sustainable increase in income to balance out our strategic investment in refurbishments and potential developments.