Logistics warehouse take-up set for another record year

Demand for UK logistics and industrial space continues to power ahead with the 16.1 sq ft taken in Q3 pushing availability to record lows, according to new data from Cushman & Wakefield.

With 48.9m sq ft taken so far this year, 2021 is also on track to overtake 2020’s take-up volume of 53m sq ft, which was itself a record. Online retailers, with 43 per cent of Q3 take-up, and third-party logistics operators, continue to lead demand.

This booming demand has resulted in an unprecedented squeeze on supply and, for the first time since Cushman & Wakefield began tracking UK logistics and industrial supply in 2009, availability has fallen below 50m sq ft, to 49m sq ft. 

This in turn has sparked a new wave of speculative development, with 12m sq ft in the pipeline as at Q3, in an attempt to match supply to demand.

Bruno Berretta, UK Retail, Logistics & Industrial Research Lead, Cushman & Wakefield, said: “While e-commerce remains the main driver of activity, it is interesting to see demand emerging from ‘new’ sectors such as electric/smart vehicle manufacturing and vertical farming. 

“While their overall property requirements are relatively small so far, a greater focus on the ESG agenda going forward coupled with supply chain re-orientation post -Brexit could see this new breed of occupiers becoming increasingly prominent in the not-too-distant future.”

This article was originally published here.