Prime and secondary industrial rents for large and small sheds in the North West rose markedly between June 2014 and June 2015, according to research by Colliers International.
The analysis by the industrial and logistics division of Colliers confirmed that an acute shortage of industrial and logistics space in the region is driving up rental levels in the primary and secondary markets for both big sheds of 100,000 sq ft plus and smaller sheds ranging in size from 10,000 sq ft to 30,000 sq ft.
In the 12 months between June 2014 and June 2015, the average prime rental value of a big shed in the North West rose by 15% from £4.63/sq ft to £5.31/sq ft while average secondary rent increased by 14% from £3.56?sq ft to £4.25/sq ft.
Prime rental values for big sheds in Greater Manchester and Warrington jumped by 16% to £5.50/sq ft from £4.75/sq ft, in Liverpool by 17% from £4.50/sq ft to £5.25/sq ft and in Lancashire by 11% to £5.00/sq ft from £4.50/sq ft.
In the secondary market for big sheds, Manchester witnessed a 20% rise from £3.75/sq ft to £4.50/sq ft while those in Liverpool jumped 14% from £3.50/sq ft to £4.00/sq ft.
Colliers’ figures for the big shed secondary rental market in Warrington and Lancashire showed increases of 20% and 23% to £4.50/sq ft (£3.75) and £4.00/sq ft (£3.25) respectively.
The prime rental market for small sheds in the North West witnessed an 8% rise in rent per sq ft from £5.69/sq ft in June 2014 to £6.13/sq ft in June 2015.
There was a similar 8% hike in this market in Manchester from £6.00/sq ft to £6.50/sq ft while Lancashire saw a 10% jump to £5.75/sq ft from £5.25/sq ft and in Warrington the rental level increased by 8% to £6.50/sq ft from £6.00/sq ft.
Julien Kenny-Levick, director, industrial and logistics for the Manchester and Liverpool offices of Colliers International, said: “An increasingly acute shortage of new supply coupled with expansionary activity from occupiers keen to take advantage of more benign economic environment, meant that primary and secondary rents have seen sharp upward movement in the 12 months covered by our research.”
Len Rosso, head of industrial and logistics at Colliers International, said: “Prime asset rents are significantly up year and on year but for those occupiers trying to avoid paying the higher prices, the secondary market is the next option. This has increased demand for secondary stock so consequently, rental prices are also rapidly rising.”