20230119-莱坊-LOGIC_West_Yorkshire_2022_Review_5页_582kb

West Yorkshire & The Humber Logistics and Industrial Sector 2022 Review Summary

Market Overview

In 2022, the market was characterized by a shortage of quality industrial stock, leading to record-low occupier take-up of under 1 million sqft, which is 71% below the five-year average. Supply was dominated by second-hand B and C grade units, with no availability over 250,000 sqft. The vacancy rate decreased, but take-up was constrained by a scarcity of A-grade properties, resulting in prime rental growth of 11% compared to 1.9% in Q4 2021. Development activity increased, with 2.5 million sqft under construction at year-end, including projects like Leeds Valley Park.

Occupier Market

Occupier take-up totaled 908,000 sqft in 2022, with distribution accounting for 63% of it. Prime rents in Leeds rose 11% annually, reaching £7.50-£8.95 psf. Key deals included Stage Freight leasing 100,000 sqft and DPD securing 59,250 sqft via a build-to-suit agreement. Lower grades (B and C) were predominant, limiting options for occupiers.

Investment Market

Investment reached an all-time high of £902 million, a 69% increase from 2021, driven by speculative developments and transactions like Arrow Capital's acquisition of the Amazon Wakefield Hub distribution center for £233 million. UK and overseas investors accounted for significant activity, with average yields around 5.50%. The market saw substantial growth in commercial acquisitions and land sales.

2023 Outlook

The absence of A-grade supply reduced 2022 take-up, but rental growth persisted due to strong demand. In 2023, increased speculative development, such as Leeds Valley Park's mid-box scheme, is expected to boost take-up and further drive rentals, addressing supply shortages and fostering market recovery.