Businesses moving their operations online due to the coronavirus pandemic are fuelling a surge in demand for warehousing and industrial space.
In 2020 the commercial property team at Boyes Turner has seen a significant increase in the number of warehouse leases it has advised on.
Analysts estimate that the growth of e-commerce could drive demand for 92 million sq. ft of warehouse space across the UK by 2024.
The coronavirus pandemic is one of the factors behind this trend. The pandemic is causing some businesses to be cautious, but for others it has been a catalyst, encouraging them to find new ways of connecting with their customers. For retailers this has meant stepping up their digital presence and embracing e-commerce. The knock on effect is an increase in demand for industrial space and we’ve never been busier with this kind of work.
We are seeing businesses that would have traditionally had a presence on the high street, ask us to help secure industrial space for them as they pivot to e-commerce as it is more cost effective than the traditional retail model.
It is not just retailers that are seeking industrial space. We have seen a traditional high street baker moving away from the high street and acquiring a “Dark Kitchen” in an industrial unit in a high density urban location to service the rise in e-commerce demand.
Boyes Turner has advised an innovative global fitness brand that runs yoga classes from pop up inflatable yoga studios inside warehouses.
The boom in house building and home renovations is also playing a part in demand for industrial space.
Despite the lockdown this year, Rachel Duncan, a Director in Boyes Turner’s commercial property team has acted for Towelrads.Com, a leading supplier of bathroom towel rails and radiators, which has just completed on the purchase of the freehold of a 62,000 sq. ft. warehouse and office space in Warwickshire and Nick Carter, who leads the Boyes Turner’s team has advised New Homes Flooring, a supplier of flooring direct to developers and contractors in the new homes industry, which is expanding into over 19,000 sf. ft. of industrial space at Total Park, Theale, Reading.
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