Midlands is leading the way on logistics
The Midlands recorded the highest level of take-up of logistics space in the first quarter of 2022, accounting for 46 per cent of the total taken across the UK.
According to CBRE’s UK Logistics Market Summary, of the 10.43 million sq ft transacted from January to March, 1.5 million sq ft (14.1 per cent) was in the West Midlands, with 5.3m sq ft under offer by the end of the quarter.
For the East Midlands it was 3.4m sq ft (32.4 per cent), representing a 111 per cent year-on-year increase. The East Midlands also ended the quarter with the largest amount of logistics space under offer, at 5.9m sq ft.
The demand for logistics space is putting upward pressure on rents, with nearly all UK regions experiencing rental growth during the quarter.
Prime rents in the West Midlands recorded the second highest level across the UK regions at £8.50 per sq ft.
Luke Thacker, associate director in CBRE’s Midlands industrial and logistics team, said: “The Midlands was once again the standout performer, dominating take-up of logistics space during the first three months of the year and reaffirming its position as the UK’s logistics heartland."
He warned: “The challenge in the Midlands, however, is the current shortage of new ready-to-occupy space and while there is speculative development in the pipeline, this is quickly being taken due to the competition for space. Developers have responded by building speculatively again but more space is needed to satisfy the strong market demand."
