Industrial and Logistics
We predict that by 2026/27, the sector will have a total rates liability of approximately £11.2bn in England and Wales. This compares to a total liability of £7.3bn in 2019/20 prior to Covid-19.
Since 2021 there has been considerable rental growth in the industrial and logistics markets. This continues a prolonged period of growth since 2015 and the sector will remain the highest total value of any of the bulk classes (retail, offices). We forecast that the industrial market will make up 27% of the total RV pool in the 2026 revaluation.
2021/22 saw exceptional rental growth with accelerated structural change arising from the pandemic and a drive to build more resilient, future-proofed supply chains. Retail and wholesale were a significant driver with huge growth in online sales during the Covid-19 lockdowns. Although there has since been a marked slowdown in rental growth and take up, there continued to be positive rental growth up to March 2024 reflecting a return to more ‘normal’ levels of activity in line with averages seen prior to the pandemic.
TOTAL RV
