Income per acre at a glance
| Use (one acre, once let) | Typical rent roll a year | To landowner, managed | To landowner, leased |
|---|---|---|---|
| Yard plots and open storage | £30,000 – £45,000 | £9,000 – £18,000 | £5,000 – £9,000 |
| Mixed yards and containers | £40,000 – £65,000 | £12,000 – £26,000 | £5,000 – £9,000 |
| Container storage | £55,000 – £90,000 | £16,000 – £36,000 | £5,000 – £9,000 |
These are indicative ranges for sites with hardstanding and good road access in Lincolnshire, Rutland and Leicestershire. Bare land earns less to the owner because more has to be spent on surfacing and fencing first.
What drives the rent
- Access: minutes to an A road or the A1 matters more than almost anything else.
- Security: palisade fencing, gates, CCTV and good lighting justify higher rents.
- Size mix: smaller plots let for more per square foot than large ones.
- Power and services: electricity, water and welfare open up more tenants.
- Planning: a clear consent removes the biggest risk for tenants and lenders.
Occupancy and costs
Well-run sites near main roads typically sit at 80 to 95% let once established. Running costs, including insurance, rates on any buildings, repairs, security, utilities and management, usually take 15 to 20% of the rent roll. Set-up costs vary widely: a yard on existing hardstanding can be fitted out quickly, while a greenfield site needs surfacing, drainage and fencing first.
Managed share or ground lease?
With a managed share, the operator funds the fit-out and runs the site, and the landowner receives a share of the rent each month, so income grows as the site fills. With a ground lease, the landowner receives a fixed, index-linked rent whether the site is full or not, and the operator takes all the risk and reward. Many owners start with a lease on part of their land and a managed share on the rest.
Get a figure for your site
Our land income calculator gives an instant indicative range. For a site-specific figure, we look at access, planning, local demand and what needs doing, then put it in writing.
