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Brexit trade talks to overshadow warehouse property market in 2018

Brexit trade talks to overshadow warehouse property market in 2018

Brexit trade talks and the chaos caused by ecommerce will overshadow the UK warehouse property market in 2018, according to a report by Cushman & Wakefield.

On the plus side, the firm predicts that multi-storey warehouses – common in mainland Europe, but rare in the UK – could finally begin to appear on this side of the Channel. This will be prompted by investors seeking new opportunities in what is no longer a bargain-basement property market compared to offices and retail property.

Bruno Berretta, UK Logistics Insight & Research at Cushman & Wakefield said: “Brexit negotiations will undoubtedly influence real estate decision-making among many occupiers, notably those with European supply chains and regions which have strong trading links with the EU. However, the growth in e-commerce will continue to benefit the sector, as internet sales account for an increasing proportion of overall retail sales.

“Prime yields also continued to tighten last year across most UK markets. With the gap between prime yields in West London and the risk-free rate, investors who remain keen on this sector, may turn to new opportunities that are likely to emerge this year.”

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