Colliers Industrial & Logistics Viewpoint 2022

March 28, 2022

Colliers’ Industrial & Logistics Viewpoint 2022 report provides a detailed overview of national and regional property activity.

The sector has delivered a record breaking performance, driven by occupiers expanding operations and eye-watering rental increases – 2021 saw an average rental increase of 8.7% for the whole industrial market, which represents the highest growth in over 30 years. This, says Colliers, was prompted by a record low supply of 18.1 million sq ft, triggered by a new record take-up of 50.7 million sq ft and a record annual share of online sales of 29.1% in 2021.

Highlights include:

  • Average land value growth in the UK skyrocketed, reporting a record 71.5% annual increase in January 2022
  • The average prime rent for large distribution warehouses (100,000 sq ft +) in the UK rose by 15.6% to £9.24 per sq ft
  • Prime rent for smaller and multi-let units in the UK reached £12.36 per sq ft, up 15.5% year on year. Prime rents for London industrial assets recorded a 25.4% average annual increase.
  • Looking forward, prime warehouses are predicted to rise by 12.5% in 2022 and 8.5% in 2023.

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