Sunday 23rd Oct 2016 - Logistics Manager

Land prices keep rising

Land prices for prime logistics development have shot up value over the last year, according to King Sturge, causing concern that rents will have to increase as well.

In percentage terms the South West has seen the largest increase of 42.9 per cent, rising from £350,000 to £500,000 per acre.

The East Midlands experienced an increase of 35.7 per cent taking land per acre from £350,000 to £475,000. Land values have also increased notably in Wales and the West Midlands where they have risen by 25 per cent and 20 per cent respectively.

The North West and the South East (excluding Heathrow) have seen smaller increases of 16.7 per cent and 9.1 per cent respectively.

At present rents in the South East are highest at £6.50-£8.50 per sq ft for large facilities, followed by the South West at £5.50-£7.50 per sq ft, then the West Midlands at £5.75-£6.50 per sq ft. Elsewhere in Britain, prime rents range from £4.00-£4.50 per sq ft in the North East to £5.25-£5.75 per sq ft in Scotland.