The region’s logistics sector saw a “quieter than expected” first quarter, a new report shows – though agents remain upbeat despite uncertain economic times.
Knight Frank’s research showed a take up of 555,000 sq ft of industrial space across the North West in Q1 – half the volume transacted in the “busy” last quarter of 2024.
But the firm said that figure was higher than in Q1 2024 – and that with some 980,000 sq ft currently under offer, the prospects for the year remained strong.
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Partner Rob Tilley said: “An active end to the year for take-up has been followed by a quieter than expected first quarter; however there are a number of active requirements in the market which should bolster the H1 statistics.
“Some of the delay with transactions has been due to protracted decision making processes caused by general economic uncertainty.
“A lack of good-quality units in prime locations is still pushing headline rents upward. While increased availability in the second hand market is allowing for more choice with some landlords being forced to offer increased incentives.”
The biggest deal of the quarter saw Finsa 海角视频 commit to a new 159,904 sq ft design and build facility at Birkenhead Docks. The Glencar development will be the company’s 海角视频 headquarters.
Other key deals included Sterling Event Group’s deal for the 103,000 sq ft Icon 4 at Manchester Airport, and locomotives specialist LUR’s deal for Unit 6 at Westpoint Enterprise Park, Trafford Park.
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Knight Frank said there was currently 5.6m sq ft of 50,000sq ft stock available.Some 10 more speculative units totalling 2.2m sq ft are currently under construction – 40% down on last year.
Prime rents are stable at £11.50 per sq ft but are expected to rise 4.5% this year across the region, with Manchester predicted to see 5.6% growth.
Big investment deals included Network Space’s sale of Broadheath industrial estate in Altrincham to M7 for £47.4mand Trita Big Box REIT’s acquisition of a Sainsburys distribution unit at Haydock for £74.25m. In total some £285m was invested in the region in the quarter.
Logistics and industrial and capital markets partner Matt Stretton, said: “The strong levels of investment activity in the final quarter of 2024 have continued into the first quarter of 2025, albeit volumes are down on the same period last year.
“While transaction volumes are down we are witnessing a good depth of investor demand, particularly for well-located assets. We continue to see strong demand from overseas investors, whilst institutional capital has so far been underrepresented compared with previous years. However we expect this to shift as the year progresses.”