Brexit and the COVID-19 pandemic have hit the UK hard, just as we are over one hurdle, we find ourselves up against another. The latest news suggests that there will be shortages over the Christmas shopping season and people will find themselves without.
The lack of HGV drivers, and the post-Brexit customs measures are causing no end of problems to the supply chain. As a result, alongside the increase in internet shopping and the stockpiling attitude, warehouse space has never been more in demand. The facts and figures below illustrate this. 2021 is already set to break previous records.
The commercial property team at Spratt Endicott work for a number of significant warehouse developers and portfolio owners and have found a massive increase in warehouse development, investment purchases and management work.
Warehouse space take-up in the first three quarters of 2021 hit 46.9 million sq ft, 27% up on the same period in 2020, according to property consultancy Knight Frank. It puts total take-up in 2021 on course to top the 51.6 million sq ft recorded throughout 2020. Landlord investment in warehouse space in the first three quarters of 2021 was £10.8bn, already higher than the £10.2bn recorded in the whole of 2020. Knight Frank forecasts the 2021 total to reach £13bn, well above the previous record of £11bn in 2017.