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City of London

Warehouse Land Values Plunge by Half as Borrowing Costs Soar



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The value of land that’s been earmarked for the development of new warehouses in the UK collapsed last year, as rising rates brought an end to the cheap money era.

Industrial land values dropped by 47.4% in the six months to December, according to research by broker Colliers. That means the average cost of an acre of land ripe for warehouse development fell to £1.5 million ($1.8 million) by the end of the year, down from £2.86 million in June, the broker’s data show.