Northern Industrial Markets

Last Updated August 2025


Industrial and logistics sectors continue their nationwide shift towards more sustainable and efficient operational practices. These changes are pivotal for the regional economy and align with broader movements towards supply chain optimisation and environmental sustainability.

Multi-let Sector: In the multi-let industrial sector, there is an increasing demand for smaller, flexible units that can cater to various operational needs. This trend is driving investments in property enhancements to appeal to a diverse tenant mix. However, the sector struggles to meet the high demand for such adaptable and modern spaces, especially those that meet environmental, social, and governance (ESG) standards.

Distribution/Logistics Sector: The distribution and logistics sector is prioritising quality and location, focusing on eco-efficiency and strategic positioning to enhance supply chain efficiency. The demand for prime, sustainable properties is exceeding supply, leading to rental growth and continued pressure for new development. Despite a cautious approach from major occupants like Amazon, the pursuit of ESG-compliant and strategically situated properties continues to shape market dynamics​​​​.

The multi-let and distribution/logistics sectors in Northern England are evolving with a focus on quality, sustainability, and strategic location. The market is responding to post-pandemic and technology driven operational shifts, ESG commitments, and the continuous need for supply chain resilience, setting a foundation for sustained growth and development within these sectors. Cost pressures on new development has continued to drive investment in repositioning and retrofitting of older assets.


The sustained rental growth in Northern England's industrial locations can be attributed to multiple factors, accentuated by their rising popularity as prime industrial spots. Key aspects contributing to the prime rents achieved in the graphic include:

  1. Demand and Supply Dynamics: Northern England's industrial areas are experiencing a notable surge in demand, spurred by the expansion of e-commerce, evolving consumer behaviours, and the necessity for businesses to optimise their logistics frameworks. This demand is contrast against a backdrop of limited supply, driven by scarce land availability and planning constraints, leading to an upward trajectory in rents.

  2. Economic and Structural Shifts: The market is witnessing structural transformations, notably the move towards online retailing and the critical need for logistical efficiency. These shifts are channelling investor and occupier focus towards strategically located prime locations, bolstering rental growth.

  3. Regional Attractiveness: The regions of the North West, Yorkshire and the Humber, and the North East have emerged as particularly appealing due to their competitive rental rates, making them attractive to cost-conscious occupiers. Their strategic geographic positions, serving as logistical connections, further enhance their desirability.

  4. Inward Investment: The positive revision of rental growth expectations renders these regions more enticing to investors seeking robust returns. This allure is anticipated to attract more capital to the sector, creating further investment and development activities.

  5. Resilience and Diverse Occupier Base: The resilience of the industrial and logistics sectors amidst economic uncertainties, coupled with a diversifying occupier base, underscores the sustained demand and rental growth. Manufacturing firms, less constrained by locational dependencies, contribute to this diversification.

The popularity of these Northern England areas as industrial locations is not merely a function of their economic performance but also reflects broader regional advantages. These include excellent transport and logistical links, a skilled workforce, and a supportive local government policy framework aimed at nurturing industrial growth. Moreover, these areas offer significant space for expansion, a critical factor for logistics operations, manufacturing plants, and warehousing needs. The strategic importance of these regions, positioned as they are at the heart of the UK's transport network, provides seamless connectivity to national and international markets, making them highly attractive for businesses aiming to optimise their distribution and supply chain operations.

At IDRE, ESG is at the heart of our thorough asset management approach. Understanding how to achieve improved EPC’s, aligning ESG with the CSR and Carbon Reduction Plans of occupiers and potential purchasers, cost effectively, are all essential to driving improved returns in your property investments. By fully understanding emerging regulations, investor targets and market dynamics, we aim to significantly improve the ESG credentials of assets

NORTH WEST

KEY AREAS

  • Trafford Park

  • Atom Valley (Heywood, Stakehill, Rochdale)

  • Airport City

  • Warrington

  • Liverpool

  • Cheshire

  • Stockport

Overview

The North West of England stands as a beacon for industrial growth and logistics efficiency in the UK. Thanks to its excellent transport network—including major motorways like the M6, M62, and M56, Liverpool and Manchester airports, and the Port of Liverpool —this region offers seamless connectivity for businesses aiming for both national and global reach. This strategic advantage is bolstered by the North West's access to a skilled labour pool, making it a prime location for logistics, distribution, and manufacturing sectors.

YORKSHIRE

KEY AREAS

  • Leeds

  • Sheffield

  • Huddersfield

  • Doncaster

  • Normanton

  • Wakefield

  • Bradford

Overview

Yorkshire is a region celebrated for its industrial resilience and logistical prowess within the UK. It benefits from a strategic position that has consistently attracted businesses. With its well-established transport infrastructure, including key motorways and proximity to major ports and cities, Yorkshire offers compelling connectivity options for national and international trade. This is further complemented by the region's access to a diverse labour market, positioning Yorkshire as an ideal location for distribution, manufacturing, and logistics operations.

MIDLANDS

KEY AREAS

  • Birmingham

  • Coventry

  • Leicester

  • Wolverhampton

  • Derby

  • Nottingham

  • Northampton

  • Stafford

The Midlands region, nestled at the heart of the United Kingdom, stands out as a dynamic centre for industrial and logistics businesses, propelled by its strategic geographical positioning and a comprehensive network of transportation links. The region's infrastructure, highlighted by key motorways such as the M6, M1, and M42, along with proximity to major freight rail hubs and central airports, offers unparalleled connectivity across the UK and beyond. This logistical prowess is further enriched by the Midlands' extensive and skilled labour force, making it a prime destination for sectors ranging from manufacturing to distribution and logistics.

Overview

NORTH EAST

KEY AREAS

  • Team Valley

  • Teeside

  • Tyne Tunnell

  • Gosforth

  • Newcastle Business Park

  • Stockton

Overview

The North East of England distinguishes itself as a key industrial and logistics hub, underpinned by its strategic location and comprehensive transportation network. Featuring crucial roadways such as the A1 and A19, proximity to the Port of Tyne, and access to Newcastle International Airport, the region boasts excellent connectivity on both a national and international scale. This logistical advantage is complemented by the North East's rich pool of labour, positioning it as an attractive choice for businesses in the manufacturing, distribution, and logistics fields.

The Importance of ESG in Industrial

Sustainable Transport Plans

Creating a sustainable transport infrastructure through surveys, promotion of sustainable options, EV charging and on-site renewable energy.

Energy Efficiency

Reducing energy consumption by upgrading lighting and heating systems, removing the use of gas and oil, adding smart energy management systems whilst investing in renewable energy such as PV cells to units roofs.

Biodiversity and Green Spaces

Enhancing biodiversity is the next step in promoting environmental upgrades, through creating green spaces and wildlife corridors, planting native species to support local fauna and implementing eco-friendly landscaping practices to improve the aesthetic appeal and contribute to local biodiversity and employee wellbeing.

Water Conservation

Water conservation strategies include installing water-efficient fixtures, harvesting rainwater for landscaping, and implementing sustainable drainage systems (SuDS) to manage runoff and reduce flooding risks.

Waste Reduction and Recycling

A comprehensive waste management strategy is crucial for reducing landfill waste, and encouraging recycling and exploring opportunities for waste to be reused or recycled within the estate.

Sustainable Construction and Maintenance

For new developments or refurbishments, sustainable construction techniques and materials significantly reduce environmental impacts. This includes using recycled materials and designing buildings to be energy-efficient.

Collaboration and Engagement

Achieving ESG goals requires collaboration between estate owners, tenants, and local communities. This can be facilitated through:

  • Green leases that include environmental clauses.

  • Working with local authorities and environmental organisations for resources and expertise.

  • Engaging with occupiers to help them cut energy costs by improving the buildings energy efficiency.

Economic Benefits and Government Support

Incorporating tenant requirements into sustainability efforts not only enhances ESG credentials but also brings tangible economic benefits. This includes enhanced tenant attraction and retention, increased rents, improved investment values, competitive advantage, and access to financial incentives such as green financing and government grants. The UK government's commitment to achieving net-zero carbon emissions by 2050 underpins these initiatives, offering a policy framework that supports sustainability efforts across industrial estates​​​​​​.

The integration of these practices not only contributes to environmental sustainability but also enhances social wellbeing and demonstrates governance through responsible management. As sustainability becomes increasingly important to consumers, employees, businesses, and investors, industrial estates that proactively improve their ESG credentials are likely to see a positive impact on occupancy rates, rents, and investment values, aligning with broader sustainability goals and government targets.

Industrial estates are increasingly recognised for their potential to enhance Environmental, Social, and Governance (ESG) credentials, and whilst the journey towards a sustainable industrial estate can be tricky IDRE have shown consistently that they can provide a comprehensive strategy, which delivers rental growth, happy occupiers and greener buildings.