The UK's e-commerce share has soared to 30%, and warehouse space is facing a shortage!

The UK is facing a shortage of warehouse space after a surge in demand for logistics sites in 2021, a new study shows .

Experts at property consultancy Colliers said the take-up of large industrial distribution warehouses rose to a record annual level .

In 2021, approximately 50.7 million square feet of large distribution warehouses were snapped up, an increase of 3.6% from the previous year. The report said that the development of e-commerce driven by the epidemic has accelerated the surge in warehouse demand .

The logistics industry continues to benefit from the strong momentum of rising online consumer spending . According to the Office for National Statistics , online sales in the UK rose to 30.1% of total sales in November last year , a significant increase from 21.6% in the same period of 2019 ( before the outbreak ) .

Len Rosso, head of Colliers International's industrial and logistics team, said : "The latest data from the ONS shows that consumer shopping behaviour has indeed changed over the years .

"Rents are set to rise, driven by supply-demand imbalances, rising land values ​​and inflationary pressures on construction costs," he said .

Retail owners are counting on e-commerce to continue growing despite the easing of pandemic restrictions.

The study also highlighted that there was 11.1 million square feet of speculative construction supply on sites larger than 100,000 square feet that were completed in 2021. Of this speculatively developed space, about 75% has been leased or is being sold, Colliers noted .

The agency also said there was just 18.1 million square feet of industrial space available for businesses , a historic low in supply.

Andrea Ferranti , head of industrial and logistics research at Colliers International , said strong tailwinds driving rising online consumer spending continue to benefit the logistics sector.

“Demand for new warehouses will continue to remain high throughout 2022 as supply chains continue to expand to keep up with e-commerce sales and package deliveries,” Andrea noted. “While demand remains elevated relative to historical standards, companies will continue to struggle to find space, and it will be a matter of survival of the fittest and who will be able to expand their operations in this challenging business environment.”

UK e-commerce

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