E-commerce growth drives record warehouse development

Around 40 million sq ft of new warehouse space was scheduled for completion in 2021, compared to 20 million sq ft completed the previous year, according to property consultancy Knight Frank.

But that hasn’t stopped demand for industrial units, says Coventry-based Bromwich Hardy, which revealed the market in key areas of the region is now becoming just as competitive as that further south and in the west.

The “insatiable demand for quality space” also continues across the South-West, according to commercial property agents Alder King, with rents and capital values hitting new highs.

More than 5.5 million sq ft of space was transacted across the region last year, driven by ongoing changes in consumer spending patterns and demand from logistics providers. This would have been higher if not for a significant shortage of good quality available space.

Developers are responding to demand, bringing forward new schemes in key locations but these are often pre-let or under offer either before or during construction to the more forward-looking occupiers.