Prime industrial rent costs in the UK 2023, by region

The prime rent for large warehouses over 100,000 square feet in the UK was 11 British pounds per square foot in 2023. However, in London, the South East, and East, rents were twice higher. Conversely, the North East was the region with the most affordable warehouse rent, with the prime rent per square foot amounting to 7.75 British pounds. 

What is the rental price for warehouses in Europe?

The UK has some of the most expensive warehouse rents in Europe. Other key markets that fetched high prices were Oslo, Helsinki, Dublin, and Munich, with rents ranging between 100 and 200 euros per square meter. In Eastern Europe, prices were notably lower, with markets such as Katowice, Warsaw, and Bucharest, reporting rents below 60 euros per square meter.

How are warehouse rents expected to develop in the next years?

The industrial and logistics real estate sector has grown dramatically since the COVID-19 pandemic. Although growth is forecast to slow, rents in the sector are expected to continue to increase until 2025. Industrial real estate is anticipated to outperform offices and retail not only by rental growth but also in terms of capital value increase.