Warehouse leases - what are you all paying?
Discussion
What is everyone paying? My 3 year lease is going from £15k to £26k in November. They want £5/sqft, was previously £2.75, I'm in the North West.
When I was first letting units in 2012, there were TONS available, now? There seems to be a shortage, especially in the 8 to 12,000sqft bracket, and prices are going up.
And what incentives did you managed to agree with landlords? Best I ever got was 3 months rent free on a 3 year lease.
When I was first letting units in 2012, there were TONS available, now? There seems to be a shortage, especially in the 8 to 12,000sqft bracket, and prices are going up.
And what incentives did you managed to agree with landlords? Best I ever got was 3 months rent free on a 3 year lease.
Also bear in mind that rents are influenced by a whole bunch of push factors, such as tenant demand, cost of construction, age and style of the building - there is a near endless list.
Colliers have a useful Industrial Rents Map which gives regional rents for the past few years, but it tends to only cover the better quality product in the regional centres.
The market has strengthened for a number of reasons as 'Surveyor' says, both from an occupational and investment perspective. Industrial, and specifically logistics appropriate property has become 'sexy' in the eyes of the investors as they've responded to a number of changes in the markets, including waking up to the structural shifts in retail, the improving manufacturing sector following, in part, the devaluation of the pound post Brexit, the cyclical shift of capital away from other asset classes into Industrial. There is literally an essays worth or more of reasons - but none of that helps you the tenant.
The very best advice I can offer is put your hand in your pocket for a few grand and engage a local, reputable commercial agency to steer you on your rent review or lease renewal. It really is money saved in the long term. They will protect things like Dilapidations (your Repairing, Reinstatement, Redecoration and Yield Up provisions within your lease) etc which give you a long term saving and may be something you missed totally.
Best of luck!
Colliers have a useful Industrial Rents Map which gives regional rents for the past few years, but it tends to only cover the better quality product in the regional centres.
The market has strengthened for a number of reasons as 'Surveyor' says, both from an occupational and investment perspective. Industrial, and specifically logistics appropriate property has become 'sexy' in the eyes of the investors as they've responded to a number of changes in the markets, including waking up to the structural shifts in retail, the improving manufacturing sector following, in part, the devaluation of the pound post Brexit, the cyclical shift of capital away from other asset classes into Industrial. There is literally an essays worth or more of reasons - but none of that helps you the tenant.
The very best advice I can offer is put your hand in your pocket for a few grand and engage a local, reputable commercial agency to steer you on your rent review or lease renewal. It really is money saved in the long term. They will protect things like Dilapidations (your Repairing, Reinstatement, Redecoration and Yield Up provisions within your lease) etc which give you a long term saving and may be something you missed totally.
Best of luck!
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