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DATABOOK FOR THE MIDLANDS

Midlands Overview

The occupational market in the Midlands has proved to be resilient in 2023 with the region forming over 55% of all 100,000+ sq ft take up in the UK. All industrial leasing volumes reached 24.5 million sq ft, 3% ahead of the “Pre-Covid” average. Annual Rental growth remains high averaging 6.6% across the Midlands.

Net Initial Yields have remained stable throughout 2023, with MSCI recording average yields across the Midlands remaining at 5.1%. Similarly, to the wider UK market investment volumes have fallen, however, remain ahead of the "Pre-Covid" average.

DATABOOK FOR THE MIDLANDS
TAKE-UP BY SIZE BAND ACROSS MIDLANDS (SQ FT)
CURRENT SUPPLY ACROSS MIDLANDS (SQ FT)
INDUSTRIAL INITIAL YIELDS BY GEOGRAPHY
INDUSTRIAL ANNUAL RENTAL GROWTH BY GEOGRAPHY
TAKE-UP BY SIZE BAND ACROSS MIDLANDS (SQ FT)

In line with the wider UK, take up in the Midlands, returned to “Pre-Covid” levels 3% ahead of the average between 2009 and 2019 totalling 24.5 million sq ft. When focusing on “Big Boxes” the “flight to quality” is evident having grown from 46% of take up 10 years ago to 67% in 2023.

Source: DTRE & CoStar

CURRENT SUPPLY ACROSS MIDLANDS (SQ FT)

Supply continued to rise through 2023 due to a large amount of speculative development completing, particularly in units over 300,000 sq ft, causing the vacancy rate to rise to 5.5%. However, a sharp decline in new construction will allow vacancy to start to fall throughout 2024.

Source: DTRE & CoStar

INDUSTRIAL INITIAL YIELDS BY GEOGRAPHY

Net initial yields continued to remain stable across the region throughout 2023. In the East Midlands, yields stood at 5.2% and in the West Midlands at 5%.

Source: MSCI

INDUSTRIAL ANNUAL RENTAL GROWTH BY GEOGRAPHY

Throughout 2023 rental growth continued to fall, however during the final quarter the decent stabilised at a higher level than before the increase during the pandemic, with the East Midlands at 7.4% and the West Midlands at 5.8% for the year ending December 2023.

Source: MSCI

DATABOOK FOR THE MIDLANDS

Headline Data

The aim of this research is to update the market in real-time with the latest data from the fast-paced and quick moving Midlands industrial and logistics market, using DTRE’s unique market position to highlight the headline stats and key data points across the region. Below are the headline data points.

£14.75

Highest Achieved Rent in 2023
(Unit 4, Urban Express Park, Birmingham - 3,876 sq ft)

1.6%

MSCI Quarterly Rental Growth in Q4'23 - East Midlands

5.5%

Vacancy Rate
in Q4'23 - Midlands

5.0%

MSCI Net Initial Yield
in Q4'23 - West Midlands

DATABOOK FOR THE MIDLANDS

Key Data Book

Prime Mid Box Rent
  • MIDLANDS
    Prime Mid Box Rent (per sq ft) Q4 2023*
    Annual Rental Growth (%)
  • Redditch
    £12.25
    28%
  • Banbury
    £10.50
    17%
  • Leamington
    £10.50
    17%
  • Solihull
    £13.00
    18%
  • Birmingham City C
    £14.00
    56%
  • Wolverhampton
    £9.50
    19%
  • Cannock
    £9.25
    16%
  • Tamworth
    £10.25
    37%
  • Coventry
    £12.00
    20%
  • Hinckley
    £11.50
    28%
  • Rugby (DIRFT)
    £11.50
    28%
  • Bardon
    £9.50
    23%
  • Leicester
    £9.75
    30%
  • Castle Donnington
    £9.25
    9%
  • Derby
    £9.25
    9%
  • Lutterworth
    £11.50
    28%
  • Daventry
    £11.25
    29%
  • Northampton
    £11.75
    68%
  • Wellingborough
    £10.50
    56%
  • Corby
    £9.50
    36%
  • Kettering
    £10.50
    40%
  • Stoke On Trent
    £9.00
    29%
  • * units of 25,000-100,000 sq ft

Prime Big Box Rent
  • MIDLANDS
    Prime Big Box Rent (per sq ft) Q4 2023*
    Annual Rental Growth (%)
  • Redditch
    £9.75
    22%
  • Banbury
    £9.50
    27%
  • Leamington
    £9.50
    37%
  • Solihull
    £10.00
    54%
  • Birmingham City C
    £10.25
    64%
  • Wolverhampton
    £9.25
    16%
  • Cannock
    £8.50
    35%
  • Tamworth
    £8.50
    10%
  • Coventry
    £10.50
    20%
  • Hinckley
    £10.50
    24%
  • Rugby (DIRFT)
    £10.50
    45%
  • Bardon
    £9.00
    20%
  • Leicester
    £9.25
    21%
  • Castle Donnington
    £8.25
    22%
  • Derby
    £8.50
    6%
  • Lutterworth
    £10.50
    32%
  • Daventry
    £10.25
    37%
  • Northampton
    £10.25
    14%
  • Wellingborough
    £9.00
    23%
  • Corby
    £9.00
    13%
  • Kettering
    £9.25
    28%
  • Stoke On Trent
    £8.50
    13%
  • * units of 100,000+ sq ft

Key Comparables

  • Date
    Q2'23
  • Type of deal
    Investment
  • Address
    Waterstones Barberry 157, Centrum 100, Burton-Upon-Trent
  • Price
    £18,400,000
  • Size
    158,435 sq ft
  • NIY
    5.46%
  • Cap val psf
    £116
  • Purchaser
    Mayfair Capital
  • Vendor
    Savills Investment Management
  • Date
    Q2'23
  • Type of deal
    Investment
  • Address
    Junction 6 Industrial Park, Electric Avenue, B6 7JJ
  • Price
    £58,500,000
  • Size
    385,923 sq ft
  • NIY
    4.50%
  • Cap val psf
    £152
  • Purchaser
    Tritax
  • Vendor
    M&G
  • Date
    Q3'23
  • Type of deal
    Investment
  • Address
    Great Bear Distribution, Unit 1055, Moulton Park, Northampton, UK, NN3 6RX
  • Price
    £12,275,000
  • Size
    102,778 sq ft
  • NIY
    4.77%
  • Cap val psf
    £119
  • Purchaser
    Kennedy Wilson
  • Vendor
    Fidelity
  • Date
    Q2'23
  • Type of deal
    Investment
  • Address
    DHL, Unit 3 Hams Hall Distribution Park, Edison Road, Coleshill, Birmingham, B46 1DA
  • Price
    £25,000,000
  • Size
    177,801 sq ft
  • NIY
    4.42%
  • Cap val psf
    £141
  • Purchaser
    URBZ Capital
  • Vendor
    Schroders
  • Date
    Q2'23
  • Type of deal
    Investment
  • Address
    Erdington Industrial Park, Birmingham, B24 0RD
  • Price
    £27,200,000
  • Size
    217,000 sq ft
  • NIY
    4.48%
  • Cap val psf
    £125
  • Purchaser
    Vengrove
  • Vendor
    Federated Hermes
  • Date
    Q2'23
  • Type of deal
    Investment
  • Address
    Howdens, 80, Scalley Way, Warth Park Way, Raunds, Wellingborough NN9 6RJ
  • Price
    £85,000,000
  • Size
    658,951 sq ft
  • NIY
    4.05%
  • Cap val psf
    £129
  • Purchaser
    Aviva
  • Vendor
    Tritax
  • Date
    Q3'23
  • Type of deal
    Investment
  • Address
    Swallowgate Business Park, Holbrook Lane, Coventry, CV6 4BL
  • Price
    £11,200,000
  • Size
    79,844 sq ft
  • NIY
    4.80%
  • Cap val psf
    £140
  • Purchaser
    Westbrook
  • Vendor
    DTZIM
  • Date
    Q3'23
  • Type of deal
    Investment
  • Address
    BSS & SCS Cross Point Business Park, Coventry, CV2 2TU
  • Price
    £14,350,000
  • Size
    96,994 sq ft
  • NIY
    5.45%
  • Cap val psf
    £148
  • Purchaser
    M&G
  • Vendor
    L&G
  • Date
    Q3'23
  • Type of deal
    Investment
  • Address
    Coventry Logistics Park, Richardson Way, Coventry, CV2 2TA
  • Price
    £140,415,000
  • Size
    783,753 sq ft
  • NIY
    4.52%
  • Cap val psf
    £179
  • Purchaser
    DTZ Investors
  • Vendor
    JP Morgan, Bericote Properties
  • Date
    Q1'24
  • Type of deal
    Investment
  • Address
    Co-Op, Castlewood Business Park, Farmwell Ln, Sutton-in-Ashfield, UK, NG17 1JF
  • Price
    £46,000,000
  • Size
    480,041 sq ft
  • NIY
    5.25%
  • Cap val psf
    £96
  • Purchaser
    Tritax
  • Vendor
    Standard Life
  • Date
    Q4'23
  • Type of deal
    Investment
  • Address
    LEDP, Leicester Distribution Park, Sunningdale Road, Leicester, LE3 1UR
  • Price
    £102,500,000
  • Size
    714,478 sq ft
  • NIY
    4.98%
  • Cap val psf
    £143
  • Purchaser
    Aviva Investors
  • Vendor
    BlackRock
  • Date
    Q4'23
  • Type of deal
    Investment
  • Address
    GXO Logistics, Alchemi, Crick, NN6 7SL
  • Price
    £27,800,000
  • Size
    195,741 sq ft
  • NIY
    4.13%
  • Cap val psf
    £142
  • Purchaser
    US New Entrant
  • Vendor
    IPIF
  • Date
    Q4'23
  • Type of deal
    Investment
  • Address
    Yusen Logistics, GP1, Grange Park, Northampton NN4 5FB
  • Price
    £19,700,000
  • Size
    161,255 sq ft
  • NIY
    4.87%
  • Cap val psf
    £122
  • Purchaser
    ARA Dunedin
  • Vendor
    DWS
  • Date
    Q1'24
  • Type of deal
    Investment
  • Address
    Zooplus AG, Carbon 207 Siskin Dr, Middlemarch Business Park, Coventry CV3 4UP
  • Price
    £28,300,000
  • Size
    208,186 sq ft
  • NIY
    5.88%
  • Cap val psf
    £136
  • Purchaser
    Clarion Partners
  • Vendor
    BlackRock
  • Date
    Q2'23
  • Type of deal
    Leasing
  • Address
    Unit 3 Connexion II, Solihull
  • Grade
    New
  • Rent per sq ft
    £12.25
  • Size (sq ft)
    25,000
  • Lease (yrs)
    10
  • Landlord
    Frasers
  • Tenant
    Tesla
  • Date
    Q3'23
  • Type of deal
    Leasing
  • Address
    Unit 2, Mammoth Drive, Wolverhampton
  • Grade
    New
  • Rent per sq ft
    £9.00
  • Size (sq ft)
    70,800
  • Lease (yrs)
    10
  • Landlord
    Canmoor
  • Tenant
    Tesla
  • Date
    Q2'23
  • Type of deal
    Leasing
  • Address
    Unit D, Spa Park, Leamington Spa
  • Grade
    New
  • Rent per sq ft
    £9.50
  • Size (sq ft)
    24,000
  • Lease (yrs)
    10 (7)
  • Landlord
    Stoford/Blackrock
  • Tenant
    General Motors
  • Date
    Q2'23
  • Type of deal
    Leasing
  • Address
    Rugby 661, Castlemound Way
  • Grade
    Second Hand
  • Rent per sq ft
    £9.00
  • Size (sq ft)
    661,000
  • Lease (yrs)
    10 (5)
  • Landlord
    Sunrise
  • Tenant
    Sainsbury’s
  • Date
    Q2'23
  • Type of deal
    Leasing
  • Address
    Apollo II, Ansty Park Coventry
  • Grade
    New
  • Rent per sq ft
    £9.25
  • Size (sq ft)
    172,000
  • Lease (yrs)
    15
  • Landlord
    Canmoor
  • Tenant
    Staircraft
  • Date
    Q3'23
  • Type of deal
    Leasing
  • Address
    DC628, Prologis DIRFT
  • Grade
    New
  • Rent per sq ft
    £9.50
  • Size (sq ft)
    628,000
  • Lease (yrs)
    10
  • Landlord
    Prologis
  • Tenant
    Intidex
  • Date
    Q2'23
  • Type of deal
    Leasing
  • Address
    Bardon 56
  • Grade
    New
  • Rent per sq ft
    £8.75
  • Size (sq ft)
    57,703
  • Lease (yrs)
    15
  • Landlord
    JP Morgan
  • Tenant
    PAL International
  • Date
    Q3'23
  • Type of deal
    Leasing
  • Address
    SP3 Symmetry Park, Doncaster
  • Grade
    New
  • Rent per sq ft
    £7.60
  • Size (sq ft)
    132,750
  • Lease (yrs)
    20
  • Landlord
    Tritax
  • Tenant
    Butternut Box
  • Date
    Q4'23
  • Type of deal
    Leasing
  • Address
    The Cofton Centre, Longbridge
  • Grade
    New
  • Rent per sq ft
    £9.25
  • Size (sq ft)
    160,280
  • Lease (yrs)
    10 (8)
  • Landlord
    St Modwen
  • Tenant
    Tesla
  • Date
    Q4'23
  • Type of deal
    Leasing
  • Address
    H200 Hams Hall
  • Grade
    Second Hand
  • Rent per sq ft
    £10.95
  • Size (sq ft)
    41,414
  • Lease (yrs)
    5 (3)
  • Landlord
    Euro Property Investments
  • Tenant
    Syncreon
  • Date
    Q4'23
  • Type of deal
    Leasing
  • Address
    Apollo 1, Ansty Park
  • Grade
    New
  • Rent per sq ft
    £10.95
  • Size (sq ft)
    70,389
  • Lease (yrs)
    10 (5)
  • Landlord
    JD.com/Cromwell
  • Tenant
    Polestar
  • Date
    Q4'23
  • Type of deal
    Leasing
  • Address
    Hinkley 47, Hinkley Park Leicester
  • Grade
    New
  • Rent per sq ft
    £10.95
  • Size (sq ft)
    47,000
  • Lease (yrs)
    10 (5)
  • Landlord
    IM Properties
  • Tenant
    Octopus Energy
  • Date
    Q1'24
  • Type of deal
    Leasing
  • Address
    Unit 5 Bardon Hill Harworth
  • Grade
    New
  • Rent per sq ft
    £8.75
  • Size (sq ft)
    118,000
  • Lease (yrs)
    10
  • Landlord
    Harworth
  • Tenant
    Europool
  • Date
    Q1'24
  • Type of deal
    Leasing
  • Address
    FP55 Fradley Park, Lichfield
  • Grade
    Second Hand
  • Rent per sq ft
    £9.00
  • Size (sq ft)
    55,856
  • Lease (yrs)
    5
  • Landlord
    Canmoor/Ares
  • Tenant
    Roxanne UK