Multi-Let - Winter Bulletin 2024

The 2024 lettings market continues to be hard fought, as numerous economic and political curveballs create challenges for occupiers. Dealmaking also continues to be drawn out while tenants that have been away from negotiations for some years adjust to the new rental tone. Multi-let rental growth has slowed since 2021/22 but estimates suggest an annualised 2024 growth rate in the mid-single digits – similar to 2023 and easily outpacing the other major property sectors. All risk metrics suggest relative scarcity of space and the development pipeline is minimal. Vacancy rates continue to be relatively flat for regions outside of the South East and are expected to stop rising this year in London. The industrial investment market is one of the strongest segments of commercial property and the 2024 investment volume is set to finish just ahead of 2023. Liquidity has continued to improve over 2024 with more participants across the risk spectrum, from prime to value-add assets.