Inflation, rising interest rates and war in Ukraine sent industrial property values tumbling last year, according to a report by Haslams Chartered Surveyors.
The Greater Reading Industrial Market report suggest developers and land buyers have paused their schemes as a result of the current economic situation, adding to the sector’s notorious lack of supply.
The report shows the change in market sentiment between Q2 and Q4 last year. The 1990s, 225,000 sq ft DHL unit in Gillette Way (pictured) was sold for £60.6 million in May, while late in the year the 208,000 sq ft Brakes building at Suttons Business Park, built in 2012, went for £46.6m, giving it a higher yield.
The report states: “These two transactions show the notable change in market conditions during the year and provide valuable evidence.
“Looking to 2023 we expect the market to have discovered its new level, but take up is unlikely to improve unless there are significant pre-lets. Those developers that can build out will benefit from the supply issues.”
To get a copy of the full report contact Neil Seager at neilseager@haslams.co.uk or 0118 921 1516.
© Thames Tap (powered by ukpropertyforums.com).
Sign up to receive our weekly free journal, The Forum here.
