Throughout the lockdown period and ongoing economic uncertainty, the industrial property sector has shown its resilience in both the investment and occupational markets.
Occupational demand has been driven substantially, but not exclusively, by the exponential growth of e-commerce which now accounts for over 34% of total retail sales and leading to eye watering take up statistics for industrial property.
In the North West with take up is 52% above 2019 figures and 38% above the long-term average with the Liverpool City Region recording some stand out transactions, notably Amazon committing to 835,000 sqft on Knowsley Business Park.
It is important to state that demand is not limited to ‘big sheds’ and is replicated across all sectors. This can be shown, again in Knowsley at Image Business Park, where LM6 acting for developer Seybourne have recently delivered a manufacturing facility for Spanish manufacturer Contenur of 55,000 sqft and on smaller Multi let estates such as Webber Industrial Estate where we have just let 8 smaller SME units within a 2 month period!
Robust demand across all sizes sand sectors is showing growth on every metric in Liverpool, bar one – supply!
Pinched supply has put landlords on the front foot & is having an inflationary effect on rents. To put this into context we are now agreeing leases on industrial space built 15 years ago at equivalent rents to those agreed for brand new space which were agreed last Summer.
Occupiers looking to relocate are finding it increasingly difficult to secure suitable new facilities. This was demonstrated recently where we helped Irish company Kukoon Rugs overcome various hurdles in their expansion plans.
LM6 were able to source a series of suitable units, negotiate favourable occupational terms on a 47,000 sqft facility in Speke, assist in fit out and also secure grant funding.
The need for specialist property advice in this fluid market is paramount at this time & LM6 as are well placed to provide market leading advice in the Liverpool City Region.
Call us to see how we can help you
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The current pandemic presents unique challenges for business and real estate issues for both landlords, owner occupiers and tenants.
In these testing times we can help so please contact us to discuss – this may include releasing capital through sale and leasebacks, lease discussions or relocation.
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