Cushman & Wakefield - Demand for UK logistics
Key take aways
- Demand for UK logistics and industrial space shows no sign of slowing as transactions in the first quarter of 2021 increased by 115%.
- New data from Cushman & Wakefield reveals that 12.5 million sq ft of industrial and logistics space.
- Overall, during the last 12 months to March (effectively the beginning of the pandemic) over 58.3 million sq ft of space has been taken
Richard Evans, Head of UK Logistics and Industrial at Cushman & Wakefield, said:
“With over 16 million sq ft of space currently under offer at the end of the first quarter, 2021 is shaping up to be another strong year for the logistics and industrial sector and developers have been quick to respond to the recent surge in demand. The market response to the pandemic and ensuing lockdowns has boosted confidence, evidenced by many new speculative developments across the country.”
Ed Cornwell, Logistics & Industrial Capital Markets Partner at Cushman & Wakefield, added:
“Established overseas investors continued to grow their UK logistics exposure with some big ticket deals but we are also seeing recently formed ventures/vehicles starting to deploy capital, with a focus on shorter term income / development. For the remainder of the year, we have visibility over an additional £4.7 billion worth of transactions meaning that 2021 will surpass the £8bn seen in 2020.”
Bruno Berretta, UK Industrial & Logistics Research and Insight at Cushman & Wakefield, said:
“E-commerce has accounted for 40% of take-up since the beginning of the pandemic – double pre-COVID levels. While growth might slow as the country emerges from lockdown, many ‘occupiers’ of the digital economy are still playing catch-up and requiring more space to cope with high levels of demand. In London, besides pure play e-commerce and parcel delivery companies, we are seeing several requirements coming from online groceries, dark kitchens and data centers operators, and we see this demand continuing over the next months.”