Rental growth in the UK industrial and logistics sector is set to continue to outpace both the office and retail sectors over the next five years, according to new research rom global real estate advisor Knight Frank.
Its 2022 UK Logistics Market Outlook Report reveals that industrial rents are expected to rise an average of 4.2% per annum over the next five years, compared with 1.7% per annum for offices and 0.6% per annum for retail. The sector’s strong occupier market fundamentals and persistent growth in online sales are expected to continue to drive rents.
It expects Greater London to continue to lead the UK market, with rents forecast to rise at least 8.7% in 2022, and could move considerably higher in areas of intense demand and short supply.
