45 days of supply left in the UK warehouse market

There is just 45 days of supply left in the UK big shed warehouse market as supply shrinks to dangerous levels.

The crisis is the result of stuttering supply and continued surge in demand as the online revolution continues to reconfigure the supply chain, says new data from Colliers International’s latest Industrial & Logistics Barometer for the third quarter of 2018.

Availability of industrial space over 100,000 sq ft in size has fallen on average by 71 per cent in the last 10 years with the South East and West Midlands (both 75 per cent) amongst the worst affected. In addition, the number of speculative developments due for completion before the end of the year is below the annual four-year average (2013-2017) of 4.46 m sq ft; currently standing at 3.5 m sq ft. 



Meanwhile, take up of industrial space over the 100,000 sq ft threshold, has continued to rise year on year with 23 m sq ft transacted so far this year, up 3.7 per cent on the same period in 2017. Total annual take-up levels for 2018 are expected to reach 29.9 m sq ft by the end of the year; which is well above the seven-year average (2010-2017) of 27.3 m sq ft and just short of the most recent record high in 2016 (32.2 m sq ft).

“The market is in good shape and we’re on track for another strong year of deals activity, so it’s no wonder we’re seeing availability levels continue to fall year on year. However, it’s the severe lack of available development land across the UK that is continuing to impact the sector,” said Len Rosso, Head of Industrial & Logistics for Colliers International. 

“We are operating under a challenging planning system, whereby we are seeing the limited land that is available for development being earmarked for residential, due to continued pressure from Central Government to address that national housing shortage. As a result, not enough land is coming through for industrial and logistics development, severely diminishing the sector’s ability to meet the continued demand from operators.” 

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