The Midlands' industrial property market reflected strong performance throughout 2022, according to new research.
Occupier appetite for high-quality robust spaces continued to increase across the region, alongside a shortage of suitable existing spaces, while both build-to-suit and speculative developments proved to be key features across the market.
Commercial property agency Knight Frank said that availability of industrial property reached 8.5 million sq ft among units over 50,000 sq ft towards the end of 2022, reflecting an increase of 1.6 per cent from 2021 which remains low.
James Clements, head of logistics and industrial at Knight Frank in Birmingham, said: "It would always prove to be a challenge to replicate the success during 2021, however the level of demand remained strong with 15 million sq ft of industrial space transacted across East and West Midland regions.
"2022 saw increased levels of activity across the 'Golden Triangle' securing 58 per cent of transactions compared to 42 per cent in 2021.
"With speculative development slowing towards the end of 2022, we anticipate demand to thrive from existing spaces throughout the coming year."
Ashley Hudson, partner and head of Knight Frank in Birmingham, added: "The Midlands industrial market proved to be resilient throughout 2022, with investment reaching £2.4 billion.
"While this was a decrease of 36 per cent on the record volumes seen in 2021, this is still ahead of the five-year average with overseas buyers accounting for 39 per cent of investment.
"With growing occupational demand, limited new developments and changing supply markets, the Midlands have attracted solid investment opportunities as we start 2023."
