Industrial property

Exceptional First Half for Northwest Industrial Real Estate Market – Report | North West Real Estate News

Arts Park


More than £500m of investment deals were completed at the start of 2022 with rentals of large units up by a quarter, according to specialist agent B8 Real Estate.

The company’s market update shows 39 investment deals worth a total of £505m closed in the six months, down 26% from the record first half of the year last, but still 24% above the five-year average.

More than a fifth of all investment (£110m) was for speculative developments, with investor appetite for such projects hitting a record high in the first few months of the year.

Meanwhile, rentals of “big box” units (more than 90,000 square feet) totaled 4.19 million square feet, up 25% from the same time last year. With only two speculative new homes immediately available, supply still fails to keep up with demand, which continues to drive up rents.

Smaller units also saw record rental growth, with rents for second-hand units edging slightly closer to those for new construction due to lack of supply.

Key investment deals in the first half included the sale of Artis Park, Winsford, to the Albert Gubay Charitable Foundation for over £22m; the acquisition of Southside Bredbury by Mileway for £10 million; the £101 million investment by Frasers Logistics & Commercial Trust to finance a new Peugeot distribution center at Ellesmere Port; and the £19 million acquisition of Rhodes Business Park in Middleton by Oxenwood.

Simon Wood of B8 Real Estate’s investment team said: “Despite economic headwinds and the ongoing war in Ukraine, the industrial property market continued to perform well, both in terms of only price trades achieved.While the market has gone up substantially for weeks, prices remain well above historical levels.

“A key trend is the growing prominence of ESG issues, particularly from institutional investors but also occupiers. Building owners and developers need to seriously consider EPC levels, BREEAM and other initiatives. they want to guarantee premium prices and high demand in the future.”

Key business transactions during the period include that of an 878,000 square foot unit at Omega’s Warrington site in Home Bargains; a 505,000 unit at Omega in Iceland Foods; and a 393,000 square foot unit at the NHS Supply Chain in Widnes.

Jon Thorne of the leasing team said: “While some occupants have suspended their requirements to assess the economic climate, we believe there is still good depth in business demand and expect the taking load remains strong in the second half, with total intake – up in 2022, still well ahead of the five-year average.”