Property company Knight Frank has announced that the total warehouse space taken up in the third quarter of 2021 was 15.7 million square feet.
This year is expected to exceed the warehouse take-up record set in 2020. According to Logistics Manager, the Industrial Research Lead at Knight Frank, Claire Williams, said:
“This puts the UK industrial & logistics sector on course for a record year, as the unprecedented levels of occupier demand looks set to ensure that the industry will beat the 51.6m ft2 of space taken in 2020.”
There is a high level of competition for premium warehouse space amongst logistics operators, retailers, parcel carriers and supermarkets. Warehouse space is scarce. New warehouses are being built, and existing ones are being extended to meet the high demand.
Supply chains have been affected by many factors, including the Suez Canal blockage early in 2021 and the shortage of materials, staff and HGV drivers. This has caused businesses to look at creating shorter and simpler supply chains. Companies are building more warehouses closer to where their customers live to shorten delivery journeys.
The construction of some new warehouses has been delayed due to a shortage of labour and materials. Many warehouse owners are therefore bringing forward warehouse expansion plans in anticipation of possible delays.
The growth of warehouse space has also resulted in increased warehouse equipment manufacturer demand, with new shelves, racking, packing tables, trolleys and other material handling and storage equipment required for new and expanded warehouses to quickly and efficiently process orders.
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