UK online spending has seen a surge in 2020, following the country’s lockdowns. On average, online shopping’s share of total retail spending has increased by around 10%, peaking at 32.8% in May 2020—the largest increase since 2016, according to the Office for National Statistics. Real estate investment company ProLogis estimated that for every €1 billion increase in online sales, an additional 72,000m2 of warehouse storage is required. The UK, however, is an under-warehoused country, which has led to low vacancy rates for several years now. Savills’ ‘big shed briefing’ lists the vacancy rate at 6.58%, which may be a cause for concern considering the falling rates of speculative warehouse construction. As industry confidence increases, this will likely rise in turn leading to an even greater need for warehouse construction. This is further compounded by online shopping infrastructure requiring a different approach to traditional retail when it comes to warehouse storage. It benefits much more by being in metropolitan areas rather than distanced from cities. These locations are much more desirable for more than just industrial operations, so prices can rise quickly, and competition can be intense.
This article was first published in the December 1st 2020 issue of Warehouse & Logistics News, subscribe to the magazine by clicking here.
Recent staff reviews at Midlands-based family business Smart-Space found the team enjoy working in an independent business where the family has always valued traditional customer service. The sales team especially love it because they have autonomy and the flexibility to work with each customer on an individual basis. With the way things are at the moment, uncertainty and caution prevail but that doesn’t stop UK businesses having plans, ambitions and the need for extra capacity. “An example of our flexibility is a recent deal we did with a company in Manchester – they wanted to make a significant advance payment in return for a larger than normal discount. I was able to do this because we are so flexible and it made perfect sense, explained sales manager Shaun Stephens.
Johnson Controls, the global leader for smart and sustainable buildings, is reimagining fire safety with the launch of its Smart Connected Fire Sprinkler Monitoring solution. As part of Johnson Controls’ Open Blue suite of digital solutions, this industry-first solution delivers real-time insights into fire sprinkler system health to enable swift preventative action. The solution empowers building managers to transform their maintenance strategies from reactive to proactive, helping to prevent costly and dangerous equipment failures before they occur.
With warehouse storage constantly requiring expansion, adaptability and future-proofing should be at the forefront of any perspective warehouse
George Simpson
Features Editor
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