Warehouse demand pushing rents up

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Tritax Big Box has secured a £1 million rental uplift following the settlement of six rent reviews across its warehouse portfolio in the third quarter of this year – equating to an increase of 8.5%.

The news came following the publication of the company’s third quarter 2020 results.

It reported: “Big Box logistics assets continue to benefit from changing shopping habits as the greater efficiencies they offer drives strong occupational activity, despite the uncertain economic backdrop.

“Take-up over the past nine months of 32.6 million sq ft has surpassed previous annual historic levels and is circa 3% above 2018’s previous annual record levels, according to CBRE.

“This demand is aligned with a noticeable increase in enquiries we have received on opportunities within our development portfolio since July driven by increasing volumes of online sales.

In the period to December 2021, the company has a further 40% of the portfolio that is subject to rent review.

Meanwhile LondonMetric has announced that it has secured 100% of rents due across its distribution property portfolio compared to 97% for office rents and 83% for retail parks.

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