Welcome to our Industrial Market Update for the start of 2024

As we head into the new year, the short weeks are now over.

With CPI inflation at 4.7%, the OCR at 5.5%, the unemployment rate at 4% and rates uncertainty domestically and internationally we have yet to see a clear runway ahead.

How is this affecting our market?

From a leasing perspective, there is still a lack of stock with vacancy at less than 1%, however in the smaller to medium market we are seeing landlords being a bit more flexible with rental rates as the short to medium term is still uncertain. However, if you are a tenant on a lower rental rate, expect a hike in your rental.

Larger warehouses are receiving less enquiry as established tenants are typically on lower rates than either newly vacant buildings or new buildings. If you have a larger vacant building it may be time to incentivize prospects to be more competitive. Many of our larger logistic clients are noticing their freight activity has dropped off.

From a sales perspective, we have noticed a few more vendors looking to cash in and sell down properties. So this will bring opportunities for buyers who are well financed.

We still see the industrial market as the best sector to invest your capital.

If you want to discuss upcoming rent reviews and/or leasing and sales opportunities, then don’t hesitate to get in touch.