We are pleased to announce our bi-annual market report focussing on the North West industrial and logistics market
- Approximately £979M of North West industrial investments were transacted in H1 2023.
- This was 94% ahead of the £505M transacted in H1 2022, albeit heavily skewed by Blackstone’s £480m acquisition of the Trafford Park Portfolio and Heywood Distribution Park.
- Transaction volumes slowed, with the number of completed sales 25% down on H1 2022.
- Investor demand remained robust, albeit purchasers were more selective, with revised pricing expectations.
- Investment supply has been limited, with a current lack of distress. However further headwinds became evident in Q2, which may now lead to more investment supply in H2 at revised pricing levels.
- Pricing remained volatile and difficult to assess, particularly in the wake of continued interest rate rises and uncertainty as to where they will peak.
- H1 2023 Big Box take-up witnessed the first slowdown in 4 years totalling 1.5M sq ft. This was down 64% from a record H1 2022, albeit there are a significant number of larger deals in solicitor’s hands.
- New build supply is 31% lower than the 1.02M sq ft recorded at the end of 2022, helping to maintain continued rental growth for deals in the market.
- New build mid-box & MLI take-up remains strong with 2023 projected to end above the 5 year average.
- Record headline new build rentals achieved in excess of £10.00 per sq ft across all mid-box & MLI sizes (5,000 to 75,000 sq ft).
- Whilst viewing and enquiry levels were slightly down comparative to last year, we continue to see occupiers wanting to modernise and expect take-up levels of new build / modern stock to remain strong for year end.
To read more on these trends and hear from our experts download our latest biannual market report