The industrial agency team reflect on activity so far in 2022.

Commercial | 23.05.2022

Burley Browne are pleased to share an industrial market update reflecting the current activity so far in 2022. The update is prepared by our dedicated industrial agency team headed up by Ben Nicholson.

The industrial and logistics market continues to flourish and demonstrate a strong level of activity with a consistently high level of demand for opportunities which remain in short supply. Freehold properties, including investments, remain particularly scarce and when presented to the market, are generating competing interest. In some instances, this results in offers being submitted well in excess of the asking price.

It is widely reported that take up for warehouses during 2021 reached record levels and surpassed those achieved in 2020. Average land values also demonstrated growth in the UK due to continued competition for sites by developers which also saw more speculative development. It is no surprise that rental levels achieved for warehouse space also increased with forecasts for the next 12 months indicating further growth year on year.

There are reports that the market is experiencing delays with some new build developments due to shortages of labour and building materials however this does not appear to be slowing demand and we are seeing a number of long dated pre-let agreements being completed. In some instances, this can be in excess of 18 months.

Equally, leasehold requirements remain in high demand which has been reflected in the lettings Burley Browne have carried out at Tame Valley Business Centre in Tamworth, resulting in rentals at £13 per sq ft.

Burley Browne have successfully disposed of over 82,000 sq ft so far which this year including the off-market sales of 25,000 sq ft of industrial/warehouse accommodation in Brownhills and 31,500 sq ft in Cannock. We continue to strengthen our position within the regional market and are currently instructed to market in excess of 92,000 sq ft of industrial/warehouse space together with over 10 acres of land opportunities, with a further 25,000 sq ft of commercial space currently under offer.

Click on the link below to view our industrial market update flyer


2022 Industrial Round Up