The trend for larger warehouse units has seen the average-sized unit increase from 217,000 sq ft in 2015 to 340,000 sq ft in 2020. In the corresponding period, the average eaves height of warehouses has increased from 11m to 14m. A 2021 report by Savills commissioned by the UKWA reveals a 32% rise in the number of warehousing units and a 242% increase in units of more than 1m sq ft. Unlike in 2015 when high street retailers were the leading occupiers, that position is now held by 3PLs, with increased occupation levels of 42% and online retailers, who have increased warehouse occupancy by a staggering 614%.
This article was first published in the October 2021 issue of Logistics Insight, subscribe to the magazine by clicking here.
Construction has started on an innovative, carbon-neutral development scheme at SEGRO Park Dagenham, part of the East Plus regeneration programme being delivered in partnership with the Greater London Authority. The units at Plot 1, which will range from 1,620 to 6,730 sq ft, are being built speculatively to provide high-quality commercial space and bring business and employment opportunities to the east London regions. The scheme provides an alternative and complementary product type to others in the East Plus portfolio but takes inspiration from the success of the Enterprise Quarter at SEGRO Park Rainham – a development that offers leases for modern industrial units to small and start-up customers and is also part of the East Plus regeneration scheme.
Trebor Developments has acquired 10 acres (4 hectares) of commercial development land from St John’s College in Huntingdon. The development, which will be named Lighting Park, Huntingdon, will deliver industrial and logistics units from 15,000 sq ft (1,394 sq m) up to 126,500 sq ft (11,752 sq m) across three units. Works are due to commence on site in Q1 2022, subject to planning.
Commercial real estate investor and developer, Firethorn Trust, has secured planning permission to regenerate a brownfield site in Ellesmere Port, Cheshire. Firethorn acquired the 42.5-acre site from Peel Ports Group in November 2020. Planning approval has now been granted for Link Logistics Park, which will provide up to 700,000 sq. ft. of modern logistics accommodation, creating approximately 800 jobs for the local region.
Prologis, the UK’s leading developer of logistics parks, has announced plans to build a new, two-unit campus at Daventry International Rail Freight Terminal (Prologis RFI DIRFT) for Eddie Stobart, to allow the company to expand its road and rail operations. Eddie Stobart is a long-term tenant at DIRFT, having had a presence on the site since 1997, and will vacate its existing properties on completion of the new units. The £75 million build- to-suit project will see Prologis provide two buildings with a total area of 538,000 sq ft, separated by a shared loading yard that can be split, if needed.
With e-commerce purchases set to continue their growth in the near future, the demand for warehouse space will rise accordingly, a bonus for commercial property developers.