CW - Q4 2022 UK LI Outlook Report - FINAL

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C&W Prime Rent 100k+

C&W Prime Rent 50-100k

C&W Prime Yield

SCOTLAND

£7.00 Latest

+3.7% Q-o-Q

+12% Y-o-Y

£7.25 Latest

+3.6% Q-o-Q

+11.5% Y-o-Y

6.55% Latest

+100bp Q-o-Q

+205bp Y-o-Y

“Demand for logistics and industrial property Scotland remained relatively strong throughout 2022, and is expected to continue to perform well again during 2023 despite some economic challenges”

DEMAND Occupational demand in Scotland reached 1.5 million sq ft, a marginal increase on the 1.4 million sq ft recorded during 2021. Despite the headline increase in space taken, the number of deals in the region fell by more than half. The majority of this space was taken in units sized between 50,000 sq ft and 150,000 sq ft, which collectively accounted for 62% of total demand throughout the year. Historically, the Scottish logistics and industrial market has seen lower proportions of Grade A space transacting than the national average, however this rose significantly during 2022 with total take-up in Grade A space accounting for 59% of total demand. Demand in the region came from a range of occupier types including notable 3PLs Gist and Wincanton, and significant demand from manufacturers such as Life Technologies limited, and Walter Watson.

PIPELINE & AVAILABILITY Availability of industrial and logistics space in the Scotland market rose slightly during 2022, reaching 2.2 million sq ft, up from the 2 million sq ft that was available at the end of 2021. The majority of space available is Grade B stock, which accounts for 55% of the total space available as at year end. However, the proportion of Grade A space available rose somewhat during 2022. Furthermore, a considerable proportion of this space exists in standing stock, highlighting a lack of new space entering the market. Supply in Scotland also remains focussed on key logistics hubs, such as the Eurocentral scheme in North Lanarkshire and around key transport hubs such as Aberdeen Harbour and Edinburgh Airport. Further development is expected during 2023, which will largely focus on expanding existing logistics clusters.

Fergus Maclennan, Partner, Glasgow

Take-up Take-up Availability Under offer

258k sqft Q4 2022

1.5m sq ft 2022 YTD

2.2m sqft Q4 2022

541k sqft Q4 2022

+18% Q-o-Q

1.4m sq ft 2021 YTD

+5% Q-o-Q

-1% Q4 22 vs Q4 21

+3% Change

+12% Q4 22 vs Q4 21

-15% Q4 22 vs 10yr av

-28% Q4 22 vs 10yr av

Availability by grade (m sq ft) Grade A Grade B

Take-up by grade (m sq ft)

Take-up by sector YTD (m sq ft)

Grade C

Grade A Grade B Grade C

1 1 2 2 3 3 4 4 5

Other

Manufacturing

3PL

Unknown

Retail

Post & Parcel

Wholesale & Distribution

Ecommerce

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