London is the most expensive region in the UK in terms of prime industrial rent, accounting for almost half of the take-up. But it’s not all bad news for the Midlands – they’ve also seen a rise in demand for small warehouse space. The Midlands region accounted for 47% of take-up in prime industrial space. But if you want to rent a small warehouse in England, you’ll find it’s not cheap.
London is the most expensive region in terms of prime industrial rents
With the increase in fast-food and online grocery delivery companies, London is now the most expensive region for industrial space. West London prime rents rose to PS35 ($46) per square foot in the third quarter of 2021 – a 75% rise on the same period last year. Rents in East London rose to PS25 per square foot, up 47 percent year-over-year.
Retailers in regional areas are feeling the pinch, too. Oxford Street, which is the world’s busiest shopping strip, has seen demand flatten. This trend is a sign of global economic gloom spreading to leading retail districts. While retailers still compete to open flagship stores in London, they will be looking at whether the sky-high rents are justified given the drop in sales.
The cost of living in the U.K. varies widely by region. For example, in London, a three-bedroom home can cost up to PS5,187 per month. In London, the median rent per square meter is around PS1,400. The cost of renting a furnished flat is 20% higher than the rent of an unfurnished apartment in the same area.
Midlands accounted for 47% of total take-up
The Midlands region topped the table in terms of take-up for the first half of 2016, with nearly nine million square feet transacted. Other regions that saw strong take-up included the North East, Yorkshire and the West Midlands. London and the South East, on the other hand, saw activity fall. Overall, take-up in the UK’s warehouse sector will remain broadly consistent in the next two years.
Prime units are achieving record levels of rental, with headline rates rising by up to 20%. This increase is largely attributable to the booming IT sector, where demand for space is higher than supply. However, there is a need for new spaces for manufacturing and distribution. In London, prime units are becoming more expensive, with rates approaching 20% above quoted rents. Similarly, prices in the Midlands and South East have increased rapidly in recent years.
Despite the tight availability of warehouse space in the UK, the market remains resilient. Despite the shortage of speculative new-build schemes, the Midlands accounted for 47% of total take-up of warehouse rental in England in Q4 of 2020. This means that warehouse managers will face increased pressure to acquire additional space as a result of increased demand. Across the UK, warehouse rental prices will continue to rise as the industry responds to this need.
Cost of renting a small warehouse
Many companies are turning to the warehouse as a modern workplace because of its flexibility. You will be able to use the space for any purpose and save a lot of money on utilities and rent. In addition, you can make use of parking options that are close to the warehouse. You can also use the space for creative purposes, such as displaying artwork or holding workshops. And the best part is, it is easy to access and has plenty of space for storing products.
If you’re looking for an industrial space for rent in England, you’ve probably noticed a recent boom in the number of warehouses available in the UK. In July, Amazon signed 18 new leases, with more planned for the year 2020. In addition, the estate agent Savills revealed that Amazon had signed another twenty-year lease in Lutterworth, Leicestershire. The lease is worth PS97 million.
The cost to rent a small warehouse in England varies wildly. A one-bedroom flat in central London will cost you around PS1,500, while a similar-sized flat in an outer-land area will cost PS614 or PS2,000. You may also want to consider energy costs. You should be prepared to pay a higher amount if you intend to rent a giant warehouse for several years.