Industrial/warehouse market: A continuing good news story - Boodle Hatfield

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03 Mar 2021

Industrial/warehouse market: A continuing good news story

Written by

Katherine Worrall View profile
2 min read

The UK industrial/warehouse market has been enjoying a sustained period of growth and a number of recent market surveys, including this one carried out by Allsop's, predict that this trend shows no sign of slowing down.

The ongoing COVID pandemic is seen as having contributed to record numbers of consumers looking to online retailers for their products and these retailers are, in turn, bolstering an already strong warehouse and logistics sector.

Space in key regional areas, and last-mile locations, is recorded as being at a particular premium and there are even some questions over whether supply will be able to keep up with demand.

For existing site owners, it will be interesting to see how many decide that now is the time to capitalise on their holdings and sell, how many decide to retain their position and enjoy the increasing levels of demand, and consequent positive impacts on rents and occupancy, and how many decide to look to develop or diversify so that they can either expand an existing offering or move within the market.

For potential investors and sector entrants, with the market view continuing to indicate that this is an area that is well worth a look, the question is who will come to the fore and how will they take things forward.

Industrial and logistics assets are firmly on the investors’ watchlists, with respondents demonstrating similar levels of interest in single and multi-let assets (52% and 48%, respectively). Aided by the increasing popularity of online shopping as a result of the pandemic, researchers said the demand for strategically positioned warehouses is unlikely to diminish any time soon.

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