The definitive guide to the UK’s multi-let industrial property market
Market overview
Headline ERV growth showed signs of cooling in central London, albeit from a high level. Meanwhile, more fringe and peripheral UK locations have played catch up, with the regions outside of the South East posting double digit ERV growth in 2022 for the first time on record. Void rates continue to tick up from recent historic lows as did the multi-let default rate in 2022, which at 4.3% was the highest since 2014. The steep rise in the UK company insolvency rate suggests this will increase again in 2023 though remain below the magnitudes observed during the financial crisis. We nevertheless remain upbeat on multi-let’s diversity and defensiveness through this challenging period, which is set to keep ERV growth positive. Landlords will seek to maintain headline rents through increased incentives and a lack of realisable physical supply will also continue to underpin the market.
