20221019-莱坊-LOGIC_South_Yorkshire_Q3_2022_5页_431kb

South Yorkshire & North East Derbyshire Logistics & Industrial Market Trends Q3 2022 Summary

Market Overview

• Speculative development increased, with 3.1 million sq ft under construction, up threefold from Q3 2021.
• Vacancy rate decreased to 2.1% (from 2.5% in Q3 2021), driven by reduced availability, which fell by 12% annually.
• New developments totaled 1.2 million sq ft by end-September, with larger units in high demand.

Occupier Market

• Q3 2022 occupier take-up: 915,900 sq ft, with YTD total of 2.2 million sq ft.
• Distribution sector dominates, accounting for 47% of YTD take-up.
• Prime rental rates in Sheffield reached £7.15 psf, up 10% YoY, driven by strong demand for new buildings and distribution space.
• Key occupier deals include Maersk's 15-year lease for Mammoth 602 (601,761 sq ft in Doncaster) and other significant rentals.

Investment Market

• Q3 investment totaled £97.1 million, with YTD total of £249 million, down 48% YoY due to investor caution.
• Domestic investment share increased, reflecting shifting investor trends.
• Average yield for YTD investment is 5.2%, with most transactions involving company and private investors.
• Notable investments include Blackbrook Capital's £50 million deal for Plot E1 in Doncaster and a £3.12 million purchase by Urban Logistics REIT.

Rental Outlook

• Prime rental growth continues, but expected to slow in 2023, with forecast increases of 3.8% for Yorkshire and the Humber and 4.9% for Sheffield.

Key Data Points

• Vacancy rate: 2.1%.
• Highest occupier take-up sector: Distribution.
• Leading investors: Company and private entities.

This summary covers market trends, occupier activity, rental rates, investment figures, and key transactions for Q3 2022.