Industrial

Industrial market update: Rental growth continues

While the office and retail sectors continue to be volatile, the industrial property market in the East Midlands continues to power activity as businesses look to flex their space.

The industrial sector has for some years now powered the East Midlands market, through thick and thin, especially through the pandemic.

The industrial market, then remains active and resilient, underpinned by a strong appetite for space despite recent economic challenges.

The latest figures for the East Midlands bear this out. Take-up figures last year were up 9% on 2022 to just over 9 million sq ft.

In the past quarter we have been busy in the industrial market.

Under offer we have:

– Unit 2 Little Tennis Street, a 3,756 sq unit in the Colwick suburb of Nottingham

– The former Toolstation unit in Loughborough, a 3,827 sq ft unit which had a guide price of £750,000.

Under offer with vacant possession, we’ve been working on:

– Units 2 and 5 at Erewash Court on the Manners Industrial Estate in Ilkeston

We have recently sold:

– 1A Shipley Court – a rare investment deal on the Manners Industrial Estate for a 2,853 sq ft unit

And we have completed the following leasehold deals:

– Unit 5 Eldon Road, a 6,500 sq ft unit which is being turned into a new football academy

– Over 6,591 sq ft of space at Units 2 & 3 on the Robin Hood Industrial Estate in Nottingham

– The 1,542 sq ft Unit F at Stonebridge Court in Nottingham

– The letting of Unit 6 at Ash Court, on the Moorgreen Industrial Estate in North Nottinghamshire

Our Associate Director, Charlotte Steggles, said: “Overall, the East Midlands industrial property market remains a focal point for occupiers and investors, driven by sustained demand and strategic new builds.

“Prime rents, while not rising as rapidly as the previous few years, were still up by 8% in 2023. This can be put down to a lack of high-quality industrial space – although there was a boost in speculative development last year.

“We believe rents will continue to grow at around the 5% mark for the next five years as there remains a strong demand for freehold industrial units and both investment and vacant possession sales.”