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Georgie Roberts, Associate, explores some of the key factors that are fuelling investor interest, and why this sector continues to outperform.

Industrial was highlighted in The Wealth Report as one of the most invested CRE sectors. In your opinion, what鈥檚 driving that growth?

COVID-19 was a major trigger that accelerated a lot of trends we were already seeing in the sector, particularly the shift towards online shopping. Over the last decade, there鈥檚 been growing demand for logistics and industrial infrastructure to support how goods are moved across the UK.

The pandemic supercharged that demand. We saw a spike in the need for space, especially from third-party logistics and delivery companies. Consumer behaviour shifted quickly, and expectations around fast delivery were cemented. If people couldn鈥檛 get next-day delivery, they just shopped somewhere else.

The surge in occupier demand created an imbalance between supply and demand, pushing rents up, and driving strong performance and return on investment. As a result, we鈥檝e seen considerable yield compression and increased institutional and private capital interest.

From a sustainability and operational perspective, what makes industrial assets attractive?

Industrial assets tend to be relatively simple, and whilst ESG upgrades are still needed (like improving EPC ratings, for example), they鈥檙e much less intensive and costly compared to retrofitting office spaces.

Another key advantage is the lower income leakage. In industrial, you're not usually dealing with things like service charges or complex building infrastructure. What you get from the tenant is often what you take home, which makes it a cleaner and more efficient investment vehicle.

Are there particular regions in the UK seeing stronger growth than others?

Absolutely. London, for example, has experienced strong rental growth due to a significant loss of industrial land to residential development. Areas like Nine Elms, which were traditionally warehouse zones, are now full of high-rise residential towers. That reduction in supply has pushed industrial rents up in urban areas.

Outside London, there has been some impressive rental growth in prime logistics corridors like the M1 corridor and in the North West. These are key transport and distribution hubs where demand remains high.

Is technology - like automation or AI - playing a role in driving sector growth?

It鈥檚 starting to, particularly in supply chain operations. We鈥檙e seeing automation and robotics being adopted in warehouses to increase efficiency, but it hasn鈥檛 yet had a huge direct impact on physical space demand - it鈥檚 more about how the space is used.

As tech evolves, we might see further implications on layout and design, but for now, the biggest drivers remain logistics efficiency and consumer expectations around fast, reliable delivery.

Were there any surprises in The Wealth Report鈥檚 findings?

Not really, but it validated what we鈥檙e seeing day to day. The real story behind the numbers is this combination of sustained rental growth, strong occupier demand, and the simplicity of the asset class, both operationally and in terms of ESG alignment.

We鈥檙e also keeping an eye on themes like port logistics, reshoring of manufacturing, and the use of rail freight to support more sustainable transport models. Those could become even more relevant in the future.

What鈥檚 next for the industrial sector?

As long as demand stays ahead of supply, with consumers continuing to expect fast, convenient delivery, we expect industrial to remain a favoured asset class. Investment is likely to continue flowing in, especially as more capital looks for resilient, income-producing assets in a shifting market.

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