Industrial market

Question 1

Talk me through the industrial market at the time of your valuation? How does it differ to today?

Answer 1

Industrial investment market was the favoured destination for capital. Investors more focused on reversionary potential as opposed to current income levels.

Amount transacted

Year-end 2021 = £16.6 bn transacted = over double the five-year average. This trend continued in Q1 2022 = £3.1 bn transacted.

Year-end 2023 = £4.9 bn transacted

Prime yields for Regional MLI

May 2022 = 3.75%
Today = 5.25%

Rental growth

In Bournemouth and Poole the highest rents for units < 100,000 sq ft increased 23% over 2021 to £9.50

Question 2

How much transacted in 2021?

Answer 2

£16.6 bn

Question 3

How much transacted in Q1 2022?

Answer 3

£3.1 bn

Question 4

How much transacted in 2023?

Answer 4

£4.9 bn

(65% of this was MLI)

Question 5

What was the prime yield for regional multi-let at the time of your valuation?

Answer 5

May 2022 = 3.75%

Question 6

What is the current prime yield for regional multi-let industrial?

Answer 6

5.25%

Question 7

What was the prime rent in Bournemouth and Poole at the time of your valuation?

Answer 7

£9.50

Question 8

What % did rents grow in 2021?

Answer 8

23%