Take up of warehouse space in units larger than 50,000 square feet reached a record 30.8 million square feet in the first half of 2021, double that recorded in the first half of 2020, according to Knight Frank.
Retailers and distribution companies collectively accounted for 76 percent of take up so far this year, as they seek to expand their online and home delivery capacity in response to growing levels of ecommerce penetration. Online sales accounted for 28 percent of retail spend in 2020, up from 19 percent in 2019, and this rose to 32 percent in the first five months of 2021. Even as lockdown measures ease further in the second half of the year, online platforms will continue to play a much bigger role in the retail market than they did pre-pandemic, and this will necessitate more structural changes in retail supply chains.
Warehouse supply shortage
Due to the high level of take up, availability, particularly of high-quality space, has dimin
