“Record” year for the North West industrial property market | North West Real Estate News

The industrial real estate market in the North West experienced “another record year”, according to the specialist agency B8 Real Estate.

The firm said investment deals had passed the £1 billion barrier for the first time and occupier participation was at “unprecedented levels”.

Its latest market update shows there were 106 investment deals worth a total of £1.3bn during the year, up 86% from 2020. rentals also increased 16% year over year to 6.2 million square feet.

With growing demand and limited supply, land values ​​have doubled in the 12 months. Prime sites are now fetching over £2m per acre, while prime rents have reached £7.25 per square foot, an increase of £0.50 per square foot on the last year.

Major investment deals included the £29.6m sale of the Venus 217 warehouse in Knowsley and the £32m sale of Kingsway 216 in Rochdale, both occupied by Amazon. Others included the £34m sale of Blackburn’s Walker Park industrial estate and the £15.5m sale of Element, at Knowsley’s Alchemy business park.

Simon Wood, head of the investment team, said: “Despite continued uncertainty around Covid, investor demand for industrial property continued to strengthen throughout 2021 – particularly for leased properties in the UK. e-commerce, last mile delivery, logistics and trade counter operators We are also seeing high prices for certain locations, particularly Trafford Park, Greater Manchester and Warrington, as the supply of assets remains severely limited.

“With around £100m of industrial properties currently on offer, we expect the momentum to continue through 2022, although lack of supply will continue to be a constraint on investment volumes.”

Major lettings in 2021 included 700,000 square feet to ICC at Airfields, Deeside; 346,526 to Makita at Martland Park, Wigan; and 217,000 square feet to Amazon at Venus 217, Knowsley.

Activity was highest in the “big box” size range of 90,000 to 200,000 square feet.