The commercial property sector, like almost any industry one could name, has had to meet the twin challenges of Brexit and Covid-19 over the last year. However, property is in a stronger position than most industries to face these trials. The surge in online spending fuels demand for warehouse space, with every additional Euro 1 billion spent online creating demand for an extra 770,000 square feet of warehouse space, research by commercial property developer Prologis reveals.

This article was first published in the January 2021 issue of Logistics Insight, subscribe to the magazine by clicking here.

Winvic Construction Ltd, a leading main contractor that specialises in the design and delivery of multi-sector construction and civil engineering projects, has started the main infrastructure works at SEGRO Logistics Park Northampton Gateway (SLPNG), a 450-acre multi-modal logistics hub located next to junction 15 of the M1. When complete, the development will comprise five million square feet of modern, highly sustainable industrial facilities and a Strategic Rail Freight Interchange (SRFI). The project has been designated as a Nationally Significant Infrastructure Project (NSIP) and the infrastructure works include the 35-acre SRFI – capable of handling 16, 775m long trains a day – new rail connections and significant improvements to the strategic road network.

Driven by the exponential growth of e-commerce, Amazon continues to expand its global operations. Increased product and service offerings and scaled infrastructure support its retail and services businesses and meet ever-growing consumer demand for rapid product delivery to the doorstep. What began with Goodman’s development of a logistics warehouse for Amazon in Leipzig, Germany, in 2006, led to a solid, long-standing development relationship between the two parties. Amazon works with Goodman to benefit from a flexible approach to design and ability to meet customer needs, and now occupies 23 properties across Goodman’s global portfolio.

LondonMetric Property Plc has announced that it has exchanged contracts with a global retail company on a new 15 year lease at an annual rent of £1.6 million, subject to upward only inflation linked rent reviews, at its Tyseley development near Birmingham. The 120,000 sq ft last mile logistics warehouse will mark the completion of the development scheme, which will now extend to over 250,000 sq ft. Planning consent has been received and construction is expected to commence imminently with completion anticipated in summer 2021.

Planning consent has been secured for a further 24,000 sq ft of industrial space at Humberston’s Hewitts Business Park. Permission has been granted for light and general industrial use, together with warehousing and distribution, with trade counter operations seen as suitable for the site, which sits by seven motor dealers. Harrogate-based developer Bramall Properties Ltd is behind it, with principal Tony Bramall having brought it forward as a legacy from his ownership of Grimsby Audi. The latest 1.5 acre site is being marketed for sale, sitting behind Tesco and The Pear Tree in the far corner of the development, beyond a £3.5 million office development realised in 2016.

As online shopping will almost certainly keep growing in the next few years, demand for warehouse space will only go up, thus benefiting the commercial property sector.

George Simpson

Features Editor

Comments are closed.