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Retailers take heavy notice of supply chain, as warehouse take-up demand soars

Retailers take heavy notice of supply chain, as warehouse take-up demand soars

Retail and e-commerce retailers were extremely interested markets for warehouse ‘big box’ space in 2017, according to the CBRE Industrial & Logistics Market Snapshot.

CBRE’s January 2018 report stated that the retail channel accounted for 42% of the total take-up in ‘big box’ warehouses – warehouses in excess of 100,000sq ft. Total take-up in 2017 for institutional quality, big box warehouses, which CBRE’s research specifically focuses on, ended at 17.26 million sq ft. This was a reduction from the record levels seen in 2016.

Availability remained stable with the demand/supply imbalance continuing to be acute with currently only eight months Grade A supply across the UK.

Jonathan Compton, Head of Industrial and Logistics Strategy, CBRE commented: “Retailers and the e-commerce sector remained at the forefront of demand this year, however, their rate of expansion has been less aggressive having used 2017 as a 'bedding in' period. With 2.94 million sq ft currently under offer there remains very positive market sentiment and we expect take-up this year to be buoyant.

“In addition, compared to the start of this property cycle, availability is at an exceptionally low level. This will promote continued tangible rental growth in the sector in for the foreseeable future.”

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