Industrial demand is significantly outweighing supply across the London, South London and South East industrial markets, according to SHW’s Q1 2023 South East Industrial Focus.

In Croydon and the surrounding areas, rents have increased from £16 per sq ft in 2021 to a highest £19.75 per sq ft achieved in 2022. Take up was just above 2021 levels with 453,000 sq ft let in 2022. With availability being halved to 670,000 sq ft and very strong logged demand (totalling 5.5 million sq ft), the industry should see the current 4.4% vacancy rate drop and rents remaining high in 2023.

Alex Gale, Partner at SHW, comments: “On the whole, 2022 saw a good level of take up across all size ranges, with lower take levels generally in locations where availability of good quality stock is restricted. As predicted, strong demand continues to be linked to logistics / B8, rather than B1 manufacturing, due to the continued need for space to serve online retailing / last mile logistics.”

More information can be found here.