North-west industrial property deals rose 150% in first quarter of 2023

The value of industrial property investment deals in the North-west rose by 150% in the first quarter of 2023 against the previous year according to figures from specialist agents, B8 Real Estate.

17 deals worth around £313 million completed in the first three months of the year, against £125 million in January to March 2022 with the same number of transactions.

While just four deals accounted for more than three-quarters of the total value of transactions, smaller investors were also more active than in the previous year. Deals under £5 million accounted for nearly half of all activity, compared to one in three deals in 2022.

John Burrows from the investment team at B8 Real Estate said:

“Transactions in the first quarter have been dominated by deals at opposing ends of the spectrum. Whilst there have been a few large deals, the figures also reflect the resilience of private investors who are continuing to actively seek opportunities, especially those with access to cash.

“Whether they are investing for the long-term, or for shorter value-add opportunities, private investors have confidence in the fundamentals of the industrial property market. They also have the added incentive that due to inflation, any money they have in the bank is losing value.”

The strength of the North-west’s industrial property market however masks the macroeconomic challenges facing some investors as well as the long-standing shortage of industrial property across the region, particularly smaller units. John Burrows added:

“Despite these surprisingly strong figures, the lack of properties on the market is limiting the number of transactions. Many vendors are reluctant to sell at present because they fear that with the current high interest rates, they may not achieve the best price for their property. In the event that interest rates do fall soon, we are likely to see more properties coming on to the market.”