20211007-莱坊-LOGIC_South_Yorkshire_Q3_2021_1页_369kb

This report provides a summary of Knight Frank's Industrial Market research for South Yorkshire and the North East Derbyshire, for Q3 2021.

Key Points:

1. Market Performance: The region performed well, recording approximately 923,200 square feet of take-up during Q3, bringing the year-to-date (2021) take-up to just under 5.2 million square feet.
2. Sales Slowdown: The sales volume tapered off compared to previous quarters, primarily due to a significant reduction in the supply of available industrial space.
3. Robust Demand: Despite the slowdown in supply, demand remained strong, with enquiry levels higher than previous years. There has been a particular increase in the size of lease requirements.
4. Supply Situation: A large portion (over 45%) of the existing supply (around 1.41 million square feet) is now under offer or in advanced negotiations.
5. Rental Growth: Signs of new development are emerging (Sheffield, Doncaster). Strong demand, lack of current stock, and increasing building costs (driving up concessions) are leading to rising prime rents, projected to grow further as new inventory enters the market.
6. Focus Area: Market focus is on prime rents, vacancy rates, yield, 5-year rental growth, and 5-year total return projections for the region.