MLI and trade-counters are the most expensive industrial assets to build. An MLI estate will typically cost around £110-125 psf to build after land and fees. This compares to c. £40-50 psf for logistics warehouses or larger solus units. Build costs are higher due to the additional cost of installing multiple utility supplies, walls, doors, offices, kitchens, toilets etc. This significantly reduces the potential for new supply to come into the market as, based on current sale and purchase yields, rents would need to be c£8 psf or higher for this to be economically justifiable. Passing rents on most estates are currently £5-6 psf, so significant growth is required to reach these levels.