Multi-let and Mid Box – April 2023
The market has proved relatively resilient to date, and fundamentals in terms of demand, supply and rental growth continue to support investment performance.
- Tim Clement
- Jon Sleeman
- Oliver Jones
Welcome to the latest edition of our multi-let and mid box industrial market report, which focuses on new industrial schemes and buildings between 5,000 sq ft and 99,999 sq ft. The report provides data on take-up, available supply, space under construction and rents and yields plus insights from our agents around GB.
- Across GB the take-up of new multi-let and mid box industrial and warehouse space reached 7.3 million sq ft in 2022. An additional 1.1 million sq ft of new space was transacted in Q1 2023.
- At the end of March 2023, there was 5.9 million sq ft of immediately available new space in the multi-let and mid box market across GB, marginally lower than 12 months earlier.
- The amount of space speculatively under construction has fallen significantly. At the end of March 2023, there was 8.8 million sq ft of multi-let and mid box space under construction, 22% lower than a year ago.
- At the end of March 2023, the total supply of new multi-let and mid box space in immediately available properties and under construction equated to just two years of take-up based on 2022 levels.
- Investment sentiment has improved this year following a sharp correction in yields in the second half of 2022. At the end of March 2023, JLL moved its prime yields for multi-let and single-let assets in by 25 bps across our three main geographies, London, the South East and the Regions.
- The economic outlook remains challenging with the UK economy likely to contract this year and Bank Rate widely expected to rise by at least another 25 bps despite a significant drop in CPI inflation over H2. However, the market has proved relatively resilient to date, and fundamentals in terms of demand, supply and rental growth continue to support investment performance.
To discover more about the multi-let and mid box industrial market, download our full report.
(We recommend for best viewing experience that the 'size of text, apps and other items' in your display settings is set to 100%.)