Ecommerce growth driving record warehouse development in 2021
The latest research from Knight Frank shows that 40 million square feet of new warehouse space in U.K. developments larger than 50,000 square feet is scheduled for completion in 2021. This compares with the 20 million square feet completed last year, as long-term strategic planning of retailers in response to ecommerce growth has led to a rise in development activity. Much of this new space is already committed, with retailers and distribution companies opting to satisfy their requirements through build-to-suit solutions.
Vacant warehousing remains tight across the United Kingdom, with 46 million square feet of space currently available, which represents 10 months’ worth of supply at current take-up levels. However, most of that space is in secondhand units that either do not have the right specification or in the right location. Due to robust levels of take up, the level of availability, particularly of high-quality space, has diminished over the course of 2020, and this i