LondonMetric has reported that rent reviews and regears of leases on its logistics warehouse portfolio increased by an average of 33%.
In the last quarter of 2022 it undertook 62 occupier initiatives adding some £2.4 million to its rent roll.
These included a regear on a 290,000 ft² regional logistics warehouse in Sheffield where the lease was extended to ten years and the rent increased by £0.8 million. This is a 50% uplift, as well as a regear and open market review at a 90,000 ft² urban logistics unit in Coventry where the lease increased to ten years and the rent increased by £0.2 million (a 39% uplift). Marks & Spencer was the recorded tenant of the Sheffield warehouse in 2019.
Andrew Jones, Chief Executive of LondonMetric, said: “We continue to see strong occupational activity across our portfolio from a very wide range of industries. This is allowing us to capture significant rental increases as well as negotiate longer lease lengths on shorter dated income. Over the next 6 to 12 months we expect to settle a high number of rent reviews and we are well on track to capturing the £8 million of logistics rental reversion that we identified at the time of our last results.”