New research suggests even more big warehouses and logistics hubs could be built after a big rise in demand during the pandemic.
Experts at real estate advisory firm Colliers said there had been a record take-up of big industrial distribution sites in recent months – sparked by demand from companies supplying products online during the pandemic.
The East Midlands in particular has seen a huge number of new sites go up, including the SEGRO Logistics Park East Midlands Gateway, near junction 24 of the M1 and a new £150 million global hub for Jaguar Land Rover parts in West Leicestershire.
A two month consultation is currently underway over plans for a 440 acre rail freight interchange and warehousing park which Tritax Symmetry wants to build in the countryside near Hinckley.
Meanwhile, St Francis and ALMCOR have sold 80 acres of land at a “prime logistics development site” in Derbyshire to BentallGreenOak and Equation Properties.
The £39.9 million deal could see up to 1.2 million sq ft of warehousing and distribution go up near Junction 29A of the M1.
Colliers said around 50.7 million sq ft of large distribution warehouses were snapped up in 2021, representing a 3.6 per cent increase on the previous year.
The Office for National Statistics said last month that 海角视频 online retail sales increased to 30.1 per cent of all sales in November, surging from 21.6 per cent against the same month in 2019, before the pandemic struck.
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Len Rosso, head of Colliers’ industrial and logistics team, said: “The latest ONS figures point to the fact that consumer shopping behaviour has really changed over the years.
“Rents will certainly rise, pushed by a landlord-favourable supply and demand imbalance, increasing land values and inflationary pressures on construction costs.”
Retail property owners have banked on growth in e-commerce continuing despite the easing of pandemic restrictions.
The research also highlighted that there was 11.1 million sq ft of speculatively built supply of sites over 100,000 sq ft completed in 2021.
Around 75 per cent of this speculatively developed space has either already been let or is under offer, Colliers said.
It added that there is only around 18.1 million sq ft of available industrial space left for firms, representing a record low in supply.
Andrea Ferranti, head of industrial and logistics research at Colliers, said: “The logistics sector continues to benefit from strong tail winds driving online consumer spending to constantly elevated levels.
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“High levels of occupational activity and demand for new warehouses, due to the unceasing expansion of occupiers’ supply chains to keep up with e-commerce sales and online deliveries, will remain elevated throughout 2022.
“Despite demand remaining elevated relatively to historical standards, companies will continue to struggle to find space and it’s all about survival of the fittest and who will be able to expand operations in this challenging business environment.”
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