B8 Real Estate have released their bi-annual market report focussing on the North West industrial and logistics market.
2016 highlights include:
• Total value of NW industrial investment transactions during 2016 stood at £505m. This is a fall of 26% when compared to the £685m transacted in 2015.
• Aside from the uncertainty in the immediate wake of the Brexit vote, the investment market has shown resilience following the decision to leave the European Union.
• There is still a flight to quality, with investors taking a more cautious approach to poorer secondary/tertiary opportunities.
• Occupier take-up in 2016 totalled 5.09m sq ft (25 transactions) compared to 4.25m sq ft in 2015.
• Of the 19 new speculative buildings above 90,000 sq ft built in the North West, 11 of these are now let.
• Prime rental levels are firmly established at £6.00 per sq ft for speculative ‘big sheds’ and £7.00 – £7.50 per sq ft for prime speculative multi-let schemes.
• The shortage of new build supply in the SME sector is slowly being addressed but there is still a shortage of good quality modern estates.