HILLINGTON PARK SEES STRONG MARKET DRIVEN RENTAL GROWTH

With occupancy levels at Hillington Park consistently remaining above 95% these lease extensions of minimum five-year terms have seen a 54% uplift on previous rental levels set 5–10 years ago.

Over the past year, headline rents  on new lettings of prime modern industrial units of 10,000 sq ft and above have reached £10.00 per sq ft, reflecting strong occupier demand in a market characterised by high occupancy levels and minimal availability.

Iain Davidson, Director at Colliers in Glasgow said: “The Scottish industrial market has seen record demand since 2020, with Hillington Park playing a key role in meeting occupier demand and driving performance in this high-growth market.  With supply in the Glasgow market remaining limited at 3.3m sq ft the vacancy rate is now at just 3.1% and, with construction costs rising, rents have surged hitting 8.3% annual growth.  The supply shortage across all warehouse sizes and grades is likely to result in continued rental increases this year and beyond.”

Derek Aitken, Senior Asset Manager at Hillington Park added: “Rental growth continues to be a positive trend for real estate investors, with occupiers willing to pay higher rents for quality industrial space in prime locations like Hillington Park. However, rising interest rates and construction costs have significantly increased the cost of debt and refurbishment. That’s why our focus remains on modern industrial stock, where we see the strongest potential for long-term income and capital growth. We’re also selectively disposing of older assets to occupiers and private investors to unlock capital for reinvestment and to reduce gearing.

“With a track record of high occupancy and growing rental levels, Hillington Park remains a prime industrial location in Scotland delivering strong results for both investors and occupiers alike.”

Current availability at Hillington Park can be found here: https://hillingtonpark.com/availability/