Savills – warehousing take up boom in UK

According to logistics real estate agents Savills, the UK warehouse market has had its best Q3 since records began – despite the shadow of the Brexit vote. Take up of new space has hit 10.4 million square feet, 45% more than the long term average of 5.7 million square feet annually and surpassing the previous high of 9.3 million square feet in 2014.

Even more interesting is that Savills saw the total take up of UK warehouse space to date in 2016 now totals 26.2 million square feet, or 9% above the 2015 year end figure of 24.1 million square feet.

Much of this growth is down to online retail expanding. Amazon has committed to 13 new units this quarter alone. However, despite Amazon being the elephant in the room, 17% of the take up in Q3 has been down to logistics companies and 3PLs, and an additional 8% was in the automotive sector. Among these Gethamp Talent took 543,692 square feet at Four Ashes, while Amethyst Group took space totalling 210,000 square feet in Wellesbourne.

Savills tracked information on clse to 40 separate transactions across the regions, with the North West of England seeing 21% of the market. This demonstrates strong activity outside of the Golden Triangle and the South East.

Richard Sullivan of Savills, said: “Despite concerns around uncertainties in the wake of the EU Referendum, the sector has continued to surpass expectations suffering minimal impact as a result. The unprecedented growth of online retail and the changing face of consumer habits has meant that distribution and logistics is now more essential than ever before. Although certain sectors appear to dominate the industrial and logistics landscape, demand still remains high from a diverse range of occupiers and there remain a good number of unfulfilled requirements. As a result, we anticipate a strong finish to 2016.”
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