Demand for warehouse space is rising massively, according to BBC News reports that an online shopping boom is driving a rush for warehouse space. And research from Savills, commissioned by the UK Warehousing Association (UKWA), shows a big increase in warehouse space since 2015.
Large warehouse space in the UK has risen by 32%, driven by third party logistics providers who fulfil and deliver most of our online shopping. And demand is continuing to soar. This means premium space is commanding premium prices. So, opportunity is knocking for the north of England in particular. We see it becoming a logistics powerhouse for prime warehousing sites if more land is freed up for industrial use.
More jobs and opportunities
This will result in more jobs, contributing to the Government’s Levelling Up strategy, and more opportunities for businesses in the logistics and warehousing sectors to grow their businesses and expand their offering.
The UK logistics property market needs millions more square feet of new warehouse space, especially in the middle size market (below 100,000sqft). This size is of less interest to the distribution giants who need equally massive ‘sheds’ – but essential to accommodate the growing demand for storage, distribution and fulfilment hubs to satisfy the need for speed to the consumer and delivering goods on a 24/7 basis.
Maximising warehouse facilities
Some warehouse providers are being very savvy in overcoming the potential shortage of new sites by investing in extending facilities to meet tenants’ internal growth requirements, to avoid them having to move on. Others are maximising facilities by snapping up adjacent land to attract the bigger players with design and build opportunities, subject to planning permissions.
We need to have a fair playing field to create the high quality and strategic logistics and warehousing sites that the country is crying out for. This will bring long-term benefits and thousands of jobs to local areas – not to mention the huge opportunities for profitable growth for those companies quickest off the mark.
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