Recently, our consultants supported a client on a property search as part of a network expansion.
Although most people are already aware that property in the south-east is more expensive than the rest of the country, it’s still quite striking to see the variance when it is clearly mapped out.
UK Industrial Lease Costs Map
£6.14 / sqft
£6.61 / sqft
£10.06 / sqft
From the sample analysed:
- Rental costs decrease the greater the distance from London, both on a North-South and East-West axis
- Stronger availability in the North West; 21 existing or close to completion versus 13 in Midlands and 12 in South
- 46 industrial properties
- 71,000-532,000 sqft
- Typically grade A spec build, with some still in construction
- Lease cost quotation by agents
The cost of space is just one element of locating a logistics operation. This might hold more weight for operations that are space hungry but it might be less relevant for labour intensive operations.
Supply chain leaders need to take account of a wide range of factors when locating their future logistics operations:
- Rent and rates
- Inbound transport from suppliers or port
- Outbound transport to customers, stores, ports or parcel carriers
- Local labour costs
- Local labour availability
- Local labour quality and skills
- Local government incentives