Longstanding warnings about the increasing difficulty of finding warehousing space in the UK are continuing to be voiced, including by both Savills and JLL…
Risk that online retailers could be “crushed out”
One industry report into the UK logistics sector, released in late December last year, called for the government to set aside public land to be developed as industrial space, on the basis that a growing shortfall could “crush out” online retailers.
One of the contributors to the report was Savills, which found there was a need for more than 18 million square feet of new industrial space each year in the UK if “exponential” ecommerce growth was to be satisfied.
However, the report warned that the next 12 months was set to see the construction of just 3.5 million square feet of warehousing space in the UK, “leaving a massive shortfall, which could see consumers having to pick up the tab for the higher cost of industrial space for retailers and couriers.”
UK’s Western Corridor under continued pressure
JLL, meanwhile, has recently undertaken research that found 5.6 million square feet of industrial floor space to have been taken up in the UK’s Western Corridor in 2016, marking a 9% rise on the previous year.
JLL said that although the amount of floor space available at the end of last year – around 7.2 million square feet – was 4% higher than the previous year, supply was still 45% down on the most recent peak in 2010.
Melinda Cross, director in JLL’s industrial and logistics team, commented:
<blockquote>A vast 5.6 million square feet of industrial floor space was taken up in the Western Corridor in 2016, 9% up on 2015 and the highest level of take-up over the last five years. Just over three million square feet was taken up in West London last year, 7% up on the five-year average.”</blockquote>
Talk to us about your UK warehousing requirements
The good news is that Bis Henderson Space can give you access to a shared logistics resources market to help make your search easier, quicker and more effective. Simply <a href=”http://www.bis-hendersonspace.com/contact/”>contact us</a> now to learn more about the depth of our expertise in all manner of aspects of warehousing space in the UK.