Knight Frank analysis shows that for every £1 billion of online sales requires approximately 1.36million sq ft of logistic warehouse space.
With UK online sales forecast to rise by up to £67 billion over the next five years, which could see e-commerce drive additional requirements of 92 million sq ft.
Such is the demand for logistics warehouse investments that yields sub 4% are commonplace and investors are finding that they cannot source product to buy.
Savills is currently tracking 8.19m sq ft of speculative development due to come to market in 2021, which given growing demand will be snapped up by investors.
According to Savills latest Big Shed Briefing, investment volumes for distribution warehouses reached £4.7 billion in 2020, a 25% increase on 2019 figures and £500m higher than the previous watermark of £4.2 billion set in 2014.
Photo by Marcin Jozwiak on Unsplash
