Rental growth in the U.K. industrial & logistics sector is set to continue to outpace both the office and retail sectors during the next five years, according to Knight Frank in its 2022 U.K. Logistics Market Outlook Report.
The report said industrial rents are expected to rise an average of 4.2 percent per year during the next five years, compared with 1.7 percent per year for offices and 0.6 percent per year for retail. The sector’s strong occupier market fundamentals and persistent growth in online sales are expected to continue to drive rents.
Greater London is expected to continue to lead the U.K. market, with average rents forecast to rise 8.7 percent in 2022, with double-digit growth predicted for areas of intense demand and short supply. This follows a record-breaking year in 2021 where prime London rents rose 25 percent (units more than 50,000 square feet) and smaller units recorded even stronger growth, with prime rents for units sub-20,000 sq
