Knight Frank’s analysis of the United Kingdom’s Industrial Outdoor Storage (IOS) market has found that growing demand from an increasingly diverse occupier group has seen the sector’s prime rents increase 36 percent over the past two years. This period has also seen the average IOS site size required rising, with 36 percent growth in London and the South East over the past 18 months — from 2.3 to 3.1 acres — with maximum requirements climbing 39 percent, 3.3 to 4.6 acres.
London and the South East have led rental growth, recording a 42 percent uplift over the 24 months, having increased 9 percent in second quarter of this year. Prime rents in the region have reached £5.45 ($7.37) per square foot, with East London recording 17 percent annualized rental growth and North London just behind at 15 percent. London’s IOS rents face continued upward pressure due to a combination of sustained demand, the limited supply of industrial land around its core logistics corridor
