industrial

UK industrial property investment saw outstanding 80% rise in 2017

Investment in industrial property soared last year to almost £11bn, making up 17% of the total number of commercial property transactions in the year.

Compared to 2016, industrial property investment grew by a record 80%, with the second half of the year seeing transactions total more than £7bn, according to research from Knight Frank. The increase in industrial capital values reached around 15% year-on-year, while annual rental value growth was 4.9%, making it a popular investment choice for many.

Investors from overseas made up most of the transaction numbers, taking a 44% share of the market last year compared to 18% in 2016. By contrast, UK institutional investors made up 21% of the total last year, which was down from 30% in the previous year. However, one particularly large transaction from overseas of £2bn by China Investment Corp made up a significant share of the total in 2017. London and the south-east largely dominated the figures, according to Knight Frank’s analysis.

Limited occupier levels

[crb_image link=”https://www.buyassociationgroup.com/en-gb/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]
Despite the heightened investment seen in the industrial property sector, the level of occupier take-up has declined from the previous year by around 28%, down to 27.3 million square feet, with 10.8 million of this being taken up in the second half of the year.

Head of logistics and industrial at Knight Frank, Charles Binks, said: “Lack of supply is limiting take-up. In the Big Shed market new-build supply of units above 100,000 square feet stood at 10.5 million square feet at the end of December 2017 compared with a peak of 28 million in Q1 2008. Developers are responding to the shortfall with a new wave of speculative development. However, there is a shortage of sub-100,000 square-foot space in the Midlands and in London conurbations, as the pressure on land suitable for industrial development continues to increase as the need to build more homes grows.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT