Record levels of activity took place in the East of England industrial and logistics market for units sized 100,000+ sq ft in 2022, with occupiers taking up 3.1m sq ft of warehouse space in the region.
According to Colliers’ Industrial & Logistics Market Pulse report, the take-up levels were up 67 per cent year on year.
The majority of the units leased above 100,000 sq ft were new stock, with 63 per cent being purpose-built units and 17 per cent speculatively developed.
Although supply increased in 2022 to 686,000 sq ft, it was still down against the five-year annual average by 14 per cent.
Average rents, for the region increased by 12.8 per cent last year, with prime rents sitting between £8.00 to £8.25 psf, however with no speculative space underway, Colliers expects further inflationary pressure on rents this year.
Tim Harding, director in the industrial and logistics team at Colliers said: “Sites in the East of England region usually offer greater affordability than London and the South East, whilst still providing excellent connectivity to those regions as well as the Midlands. What’s more, with the freeport benefits available at locations like Felixstowe and Harwich, the region is well located to capitalise on healthy occupier demand.
“Speculatively built projects have performed well, and the plentiful supply of labour in the local markets further increases the appetite from occupiers, developers and investors alike.”
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