Telsar report freehold demand in the London Urban Logistics Sector remains strong despite the rising cost of debt
Telsar, a leading Commercial Real Estate Advisory specialising in industrial/logistics sector, has reported that despite the challenges of rising interest rates and higher costs of debt, demand for freehold industrial properties remains robust. The limited supply and the growing logistics and distribution sector are driving the continued demand for freehold properties in the market.
Industrial development has been slow, resulting in a scarcity of available freehold properties. As a result, owner occupiers are eager to secure their own space and build equity in their assets, leading to heightened competition and driving up demand and prices. Telsar has witnessed this trend first-hand with several freehold transactions completed in the first quarter of 2023, indicating the resilience of the industrial real estate market.
The logistics and distribution sector, fuelled by the growth of e-commerce and online retail, has also contributed to the increased demand for industrial properties. Businesses are actively seeking strategically located warehouses and distribution centres to support their operations, further driving demand in the market.
Additionally, the leasehold market is also showing strong levels of occupational demand. Many businesses, unable to afford the upfront costs of purchasing a freehold property, are opting for leasehold arrangements for their industrial space, providing flexibility and cost savings in the short term.
Among the various industrial markets in the UK, the London Urban Logistics market stands out as one of the most resilient. The city’s strategic location, excellent connectivity, and strong economic fundamentals make it a prime location for logistics and distribution operations. Despite the changing economic conditions, the London Urban Logistics market has shown great prospects for further growth, making it an attractive investment option for businesses and investors.
As a Commercial Real Estate Agent, Telsar emphasises the strength and potential of the industrial and logistics market. The company encourages businesses and investors to take advantage of the opportunities available in the thriving industrial real estate market by contacting Telsar for their industrial/logistics requirements. With a team of experts who understand the current market conditions, Telsar is well-equipped to help clients navigate the industrial real estate landscape and find the perfect property to meet their needs.
View all of Telsar’s commercial property listings on NovaLoca here.
