Prime industrial rents have continued to move higher in the six months to the end of Q1 2022 but the pace of growth has eased following the significant advancement seen in the first half of 2021. Average growth across the Glenny region was 9% over the six month period to the end of Q1, with the strongest growth in the Essex and South East London & Kent markets. Over the past 12 months, prime rents have risen by 31.5% on average across the region, with some markets, seeing growth in excess of 35%. The highest rented location in the Eastern M25 is Canning Town, where prime rents now stand at £32.50 per sq ft, comparable to other locations across Greater London.
Prime industrial rents continued their upward trend over the past six months albeit a slower pace than the previous two quarters. Rents were up by 6.6% in the period to the end of Q1 2022 bringing the overall growth for the year to 31.5%. Rents in the Eastern M25 industrial market are now 50.9% higher than their pre pandemic levels, illustrating the importance that supply chains are playing as the economy recovers from lockdown.
Prime industrial rents in Canning Town moved £32.50 per sq ft at the end of Q1 2022, a new record for the Eastern M25 market, with other locations in London, Tottenham/Edmonton and Charlton/Woolwich now standing at £27.50 per sq ft and £25.00 per sq ft respectively.
Freehold owner occupier capital values per sq ft have also risen by similar levels, with prime values up by 29.9% over the past 12 months across the region as a whole, albeit these values lag behind investment market pricing.