Rents for prime UK open storage properties have increased by 24% over the past year – ahead of the 6.8% rental growth recorded for prime I&L assets, according to the latest data from Knight Frank.
The strongest annual rental growth for prime open storage assets was recorded in South Yorkshire (+55%), followed by the Midlands (+53%), Scotland (+31%), Wales (+27%) and the North West (+26%).
Knight Frank said open storage rents are likely to grow in the future due to an ongoing lack of supply, with fewer than 10 prime sites available for open storage across London.
Deirdre O’Reilly, associate in the commercial research team at Knight Frank, said: “In recent years, growing occupier demand for better-quality open storage sites has led to this nascent sub-sector’s emergence as a specialised and distinct asset class. New and larger operators are expanding the scope of open storage requirements, using sites for a broader range of purposes and longer-term components of their operational strategies.
“Like the wider industrial market, prime open storage sites offering higher operational quality, superior features, and excellent connectivity to large urban centres, motorways and ports are the most attractive and increasingly sought-after. However, the supply of prime sites is highly constrained, driving up rental values for the limited number of prime opportunities that are available.”
