Urban Logistics owns warehouses across the UK
(Picture: Urban Logistics)Firms signed up for UK warehouse space equivalent to the size of around 31 Wembley stadiums over the last three months, as many sought to prepare for expansion and better cope with the supply chain crisis.
There was 13.2 million square feet of lettings done nationwide, according to preliminary data compiled by property agent Savills for the Evening Standard. It tracked space at properties of 100,000 square feet or higher.
That was the second highest-ever third quarter recorded for take-up. A year earlier at the height of the pandemic 15.8 million square feet of deals were done as retailers urgently needed room for online orders.
In London around 660,000 square feet was let in the three months to September 30, the highest third quarter since 2008.
Online furniture retailer Made, John Lewis and Asos are among companies to have signed for more UK storage and distribution space in 2021. Many saw online sales leap during the pandemic and want more space to help cater for high customer demand.
Savills added that supply has now fallen to its lowest level ever recorded.
Kevin Mofid, the firm’s head of industrial and logistics research, said: “Due to current issues in the supply chain, such as the lack of HGV drivers and hold-ups at the border, occupiers are increasing their inventory to maintain regular levels of service.”
He said: “This is reflected in the significant take-up we are seeing across the country, which we expect to continue in the medium term as requirements for new warehouses remain at a record high.”
Earlier this year landlord Urban Logistics said: “The urban logistics segment of real estate continues to enjoy strong structural momentum as tenants invest into their logistics real estate footprint, the growth in e-commerce continues, vacancy rates on ready to occupy space remain low and, overall, demand for logistics space outstrips supply.”
