The cost of renting industrial property in and around Liverpool has risen by 16.7% in the last 12 months, the biggest increase anywhere in the UK, according to research by Lambert Smith Hampton.
Prices around the city have reached a record £5.25/sq ft for grade A industrial space, and £4/sq ft for secondary space.
However, these prices are still below those in nearby Warrington, which saw rents increase by another 4.5% to £5.75/sq ft new and £5/sq ft for secondary space, making it the most expensive industrial space in the North West.
Robert Diggle, director, Lambert Smith Hampton, Liverpool said: “Peel’s investment in the Liverpool2 deep-water dock has opened up our transport networks, making the city a much more inviting location for logistics businesses. This is subsequently driving up the demand, and therefore prices.
“However it’s not just prices that are changing in the Merseyside industrial property market, there’s a real shift in demand for sizes of unit too. We’ve found that take up of industrial space at the larger end of the scale has risen by 11% over the last year, whereas demand for smaller units of 10,000 sq ft or less has decreased by 24%.
“This is largely as a result of increased market confidence which is resulting in businesses expanding rather than downsizing their operations. We’re also seeing that the growth of online retailers offering same-day delivery services has resulted in increased take-up of warehouses, such as Amazon’s letting of Venus 110.”