{"id":11792,"date":"2018-02-20T10:15:33","date_gmt":"2018-02-20T10:15:33","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=11792"},"modified":"2023-10-06T10:56:46","modified_gmt":"2023-10-06T09:56:46","slug":"uk-industrial-investment","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/02\/20\/uk-industrial-investment\/","title":{"rendered":"UK industrial property investment saw outstanding 80% rise in 2017"},"content":{"rendered":"

Investment in industrial property soared last year to almost \u00a311bn, making up 17% of the total number of commercial property transactions<\/a> in the year.<\/strong><\/p>\n

Compared to 2016, industrial property investment grew by a record 80%, with the second half of the year seeing transactions total more than \u00a37bn, according to research from Knight Frank. The increase in industrial capital values<\/a> reached around 15% year-on-year, while annual rental value growth was 4.9%, making it a popular investment choice for many.<\/p>\n

Investors from overseas<\/a> made up most of the transaction numbers, taking a 44% share of the market last year compared to 18% in 2016. By contrast, UK institutional investors made up 21% of the total last year, which was down from 30% in the previous year. However, one particularly large transaction from overseas of \u00a32bn by China Investment Corp made up a significant share of the total in 2017. London<\/a> and the south-east largely dominated the figures, according to Knight Frank’s analysis.<\/p>\n

Limited occupier levels<\/h4>\n

[crb_image link=”https:\/\/www.buyassociationgroup.com\/en-gb\/advice\/property-investment-starter-course\/” image=”https:\/\/cdn2.hubspot.net\/hubfs\/1717782\/Asset_Store\/WebCTA\/cta.jpg” align=”left”]
\nDespite the heightened investment seen in the industrial property sector, the level of occupier take-up has declined from the previous year by around 28%, down to 27.3 million square feet, with 10.8 million of this being taken up in the second half of the year.<\/p>\n

Head of logistics and industrial at Knight Frank, Charles Binks, said: “Lack of supply is limiting take-up. In the Big Shed market new-build supply of units above 100,000 square feet stood at 10.5 million square feet at the end of December 2017 compared with a peak of 28 million in Q1 2008. Developers are responding to the shortfall with a new wave of speculative development. However, there is a shortage of sub-100,000 square-foot space in the Midlands and in London conurbations, as the pressure on land<\/a> suitable for industrial development continues to increase as the need to build more homes grows.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Investment in industrial property soared last year to almost \u00a311bn, making up 17% of the total number of commercial property transactions in the year. Compared to 2016, industrial property investment grew by a record 80%, with the second half of the year seeing transactions total more than \u00a37bn, according to research from Knight Frank. The… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":11837,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8,6],"tags":[286,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/11792"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=11792"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/11792\/revisions"}],"predecessor-version":[{"id":6097114,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/11792\/revisions\/6097114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/11837"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=11792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=11792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=11792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}