According to Savills, the UK warehouse market has had its best third quarter since records began with take-up hitting 10.4 million sq ft, 45 per cent higher than the long term average of 5.7 million sq ft and surpassing the previous high of 9.3 million sq ft achieved in 2014.
What’s more, Savills figures show that the total take-up of UK warehouse space to date this year now totals 26.2 million sq ft, 9 per cent above the 2015 year end figure of 24.1 million sq ft.
This significant increase in take-up can be attributed, in part, to the continued growth of online retail and occupiers such as Amazon who, for example, has committed to 13 new units this quarter. However, despite this perceived dominance, 17 per cent of take-up in the third quarter was down to logistic companies and 3PL’s and a further 8 per cent to the automotive sector. Notable commitments include Gestamp Talent taking 543,692 sq ft at Four Ashes and Amethyst Group taking space totalling 210,000 sq ft in Wellesbourne.
Regionally, Savills tracked information on close to 40 separate transactions, with the North West accounting for 21 per cent of the market, demonstrating strong activity outside of the Golden Triangle and the South East.
Richard Sullivan of Savills, said: “Despite concerns around uncertainties in the wake of the EU Referendum, the sector has continued to surpass expectations suffering minimal impact as a result. The unprecedented growth of online retail and the changing face of consumer habits has meant that distribution and logistics is now more essential than ever before. Although certain sectors appear to dominate the industrial and logistics landscape, demand still remains high from a diverse range of occupiers and there remain a good number of unfulfilled requirements. As a result, we anticipate a strong finish to 2016.”