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No indication industrial property boom will burst - CMS

No indication industrial property boom will burst - CMS

There is no sign that the wave of money which has funded the UK’s shed property building boom will dry up, according to the latest research.

A poll of 350 real estate managers with combined assets of more than £400bn, showed that 74% believed distribution and logistics property was the most appealing place to put their money.

A staggering 91% think demand for warehouses will increase in the UK over the next 2 years, whilst, 88% believe strong demand will lead to multi-storey warehouses in space-constrained cities.

The research is by international law firm CMS.

Ciaran Carvalho, Head of Real Estate, CMS UK, said: “UK logistics has benefitted from a tide of international capital. Global players have been captivated by the transformative impact of e-commerce on the sector.”

 Both real estate professionals (85%) and retailers (83%) feel strongly that the future health of the logistics industry depends on securing a balanced trading agreement between the UK and EU.

However, when CMS polled retailers there was a discrepancy between their view of last-mile delivery and that of property folk. Retailers were much less enthusiastic about demand for last-mile units. “This is an interesting divergence of view, since speed of delivery is a key battleground between online and traditional retailers. The premium placed on this centrally located space, may mean some traditional retailers simply do not have the resources to compete with the online retail giants,” CMS said.

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