Industrial Market

Prime industrial rents in both Milton Keynes and Northampton hit new highs in H1 2023.

Industrial Market

Demand for industrial space in the M1 South area fell in the first half of 2023, compared with the exceptionally high levels of the last two years. The drop reflected both the end of the pandemic surge in online retail sales and the uncertain outlook for the economy.

Although availability increased in the first six month of 2023 to 4.9%, it remains below pre-pandemic levels and consistent with rental growth.

Take up in the 2023 H1 was concentrated in smaller units below 30,000 sq ft, reflecting strong demand from local occupiers.

Prime industrial rents in both Milton Keynes and Northampton hit new highs in H1 2023, rising by 24% and 36%, respectively to £13.00 per sq ft and £11.25 per sq ft. Secondary industrial rents also rose, albeit more slowly.

While future rental growth will be weaker, we expect prime industrial rents in Milton Keynes and Northampton to increase to £15.50 per sq ft and £12.50 per sq ft respectively by the end of 2028.

Industrial Agency case studies

Dawson 84

84,000 sq ft warehouse, comprehensively refurbished to BREAAM Excellent, EPC A+ and Carbon Neutral standard. The tenant agreed to operate on a carbon neutral basis during their occupation which was one of the pre-requisites of our client.

Tilbrook 44

Facilitated the off-market sale of a 44,187 sq ft industrial unit on a leasehold basis, representing Custodian. Red Bull approached us to include the site in their Technology Campus, resulting in an exceptionally high sale price for our client, thanks to the discreet nature of the transaction.

17 Tanners Drive

After an extensive 8-month refurbishment, we secured a 10-year lease for a 33,045 sq ft industrial unit. Despite three previous attempts, we successfully completed the lease in November 2022 with United UK LLP at £8.50 per sq ft, a £1.00 per sq ft increase over the original terms and with fewer rent-free concessions, resulting in a happy client.

Business Space Agency Team >

M1 South Databook Industrial

Our latest Databook provides an update on the M1 South Industrial Market. Demand for industrial space in the M1 South region fell in the first half of 2023, compared with the exceptionally high levels of the last two years.

Download our Databook report >

Contact us

Paul Davies, Partner, Business Space Agency

paul.davies@bidwells.co.uk

07944 774137