Some 13.5 million sq feet of big-box storage facility space was leased in the UK during the 3rd quarter of the year, up by 73% in the same period in 2019, according to a new research study from business property group BNP Paribas.
The development in online retail throughout the coronavirus pandemic is credited with much of the increase in demand. In Might, the Office for National Statistics approximated eCommerce accounted for a third of total retail sales, and although this portion has actually dropped as shops have reopened after the UK nationwide lockdown, it is still considerably up year on year.
BNP Paribas’s UK Industrial & & Logistics Expert report discovered that with one quarter still to go, 2020 storage facility take-up currently stands at 34.6 million sq ft, exceeding the previous yearly record embedded in 2016. Over ten million sq ft is believed to be under the deal, indicating 2020 take-up is on track to hit 45 million sq ft.
The report said that 35% of third-quarter take-up connects to online-only retail. It kept in mind Amazon concurred 5 deals during the duration, including 2.3 million sq ft at Balance Park Swindon and 532,500 sq feet at Hinckley Park, Leicestershire. Amazon has taken 11.2 million sq feet of big-box space in 2020 so far, according to BNP Paribas.
On the other hand, meal package providers such as HelloFresh and Gousto have more than doubled their storage facility capability in the third quarter, with the latter pre-letting 307,807 sq ft of an area at Mountpark Warrington Omega II, and taking Chillbox, a 196,178 sq ft freshly reconditioned cold store center in West Thurrock, Essex.
Josh Holmes, senior expert for retail & & logistics at BNP Paribas, commented: “Covid-19 has created enduring changes in customer routines, speeding up requirements for logistics space.
“Occupier attention is also turning to Brexit and the ongoing trade settlements, which might result in more demand-side pressures as services want to stockpile or bring supply chains better to home.”
The report mentioned that supply of existing systems stays carefully balanced at 33.4 million sq ft. Based on the five-year yearly typical take-up of 29.4 million sq ft, BNP Paribas approximated the warehouse market has circa 13 months’ worth of supply.