Limited supply of warehouse space post 2024 to pressure on rents

Rents for prime warehouse and logistics assets to go up 2% to 5% in 2023.

There is an expected limited supply of warehouse space after 2024, which will put upward pressure on warehouse rents, Savills research revealed.

It also expects rents for prime warehouse and logistics properties to grow by 2% to 5% year-on-year in 2023.

Whilst demand for industrial space, particularly modern high-specification warehouses and industrial and business parks with good connectivity and amenities, will be supported by growth industries such as logistics, food, precision engineering, and the biomedical sector, industrial sentiment may be dampened by the slowing global growth outlook and increased headwinds. 

This is likely to lead to more caution in expansion plans among industrialists.