22nd January 2019 | Blog posted by Priya Parmar BA(Hons), MA
The property market has seen an unprecedented surge in demand for warehouse space over the last few years stemming from the ongoing shift towards online shopping resulting in retailers needing move from the traditional high street presence to distribution warehouses.
The UK’s e commerce boom has seen online sales grow at a much faster rate than in-store purchases in short periods of time forcing retailers to rethink their strategies to meet consumer demands.
In the first 6 months of 2018, it was calculated that over 12 million square feet of logistics property was let for the use of storage and distribution, with over 4 million square feet still under offer.
However, the current lack of stock available has seen a drive in rental growth across the region within the logistics sector, and with demand and take up at his highest rate ever since 2014, this could suggest demand could exceed supply at a quicker rate than expected.
In 2015/16 our company saw rental figures for warehouses in the Barking area at £7/£8 per square foot. At the end of 2018, rental figures increased to nearly £12 per square feet, with significantly quicker turnaround periods of around 2-3 weeks from instruction to agreement of terms.