We are pleased to announce our bi-annual market report focussing on the North West Industrial and Logistics Market with particular emphasis on the reaction so far to the Brexit decision.
H1 2016 highlights include:
- Total value of NW industrial investment transactions during H1 2016 stood at £245m. This represents a decline in trading compared with H1 2015 (£295m) but an increase on the £230m transacted in H1 2014.
- The vote to exit the EU has led to a great amount of uncertainty within the market. To date there has been only a slight weakening on prime assets, whilst larger reductions have been experienced on more secondary stock.
- With UK 10 year gilt yields falling below 1% and continued positive news on the occupational side, we expect a possible rebound in activity towards the end of the year.
- H1 2016 saw take up for units above 90,000 sq ft of 1.7m sq ft (8 transactions). This is slightly down on the 3.0m sq ft recorded in H1 2015. That said, there is a further 800,000 sq ft currently in solicitor’s hands.
- The immediate aftermath of the Brexit decision has seen little change in the occupier market. Of the 14 buildings above 90,000 sq ft either completed or under construction 6 are under offer or have terms issued to active enquiries whose occupational requirements are not likely to change in the short term.
- Speculative funding will become more challenging, especially for secondary schemes. However, if occupier demand remains consistent there could be a shortage of supply in certain locations which will help maintain strong rental levels.
For a copy of our full market report please click here. We shall continue to keep you advised and updated on the effects of Brexit. Should you require any additional information please do not hesitate.