Amazon’s warehouse take-up in the third quarter of 2016 totalled 3.4m sq ft – nearly a quarter of all the big shed floorspace let.
Amazon was the largest single occupier in a quarter than saw 13.8m sq ft let, according to Gerald Eve. This is the largest quarterly total on record.
Deals included Amazon’s 1.1m sq ft pre-let at Verdion’s iPort scheme, Doncaster. It also signed 12 other deals.
The data comes as traditional bricks-and-mortar retailers make a comeback. The supermarkets – once the mainstay of the market – have been largely absent from the warehouse scene. However, Lidl has now opened a 420,000 sq ft regional distribution centre at Southampton, part of a £1.5bn investment in UK expansion.
Gerald Eve says it expects rents to continue to grow thanks to high demand and low supply of new speculative floorspace. “This could mean that the era of restricted supply could continue into 2017.”
However, it adds: “Whilst we have seen an increase in the overall availability rate, in the absence of the wholesale return of second-hand space back to the market, this is likely to be short-lived.”