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Road projects to unlock industrial premises for warehouse development

Road projects to unlock industrial premises for warehouse development

Road investment projects could unlock up to 600 acres of new UK logistics development, say researchers.

Lambert Smith Hampton’s ‘Roads to Riches’ report, released this morning,  says that the government’s proposed road investment projects could have a significant impact on the UK logistics market.

The report identifies seven projects that could collectively unlock as much as 27m sq ft of new warehouse development.

However, it could also push up new warehouse rents by around 5 per cent.

The Chancellor is expected to announce additional road investment schemes in his Autumn Statement on 3 December.  

Lambert Smith Hampton analysed around 50 infrastructure investment schemes proposed by the government over the past year under the umbrella plan ‘Investing in Britain’s Future’ and other initiatives.  The ‘Roads to Riches’ report focuses on seven planned and proposed schemes that Lambert Smith Hampton expects will have the most impact on the industrial and logistics sector:

•         A5-M1 Link and Woodside Link, Dunstable
•         South East Nottingham Corridor improvements
•         A45 Development Link Road, Daventry
•         A38 Peddimore Junction improvements, Birmingham
•         A5 improvements, Nuneaton/Hinckley
•         A14 Cambridge to Huntingdon improvement scheme
•         A6 to Manchester Airport Relief Road
 
Steve Williams, national head of the industrial and logistics team at Lambert Smith Hampton, said: “In a sector where time is critical to success and profit margins are wafer thin, there is a direct link between the provision of road infrastructure and demand for industrial premises, particularly distribution warehousing for retailers and third party logistics providers.
 
“The government has recognised that congestion and delays are a major problem, not just for road hauliers and logistics operators, but for businesses dependent on time-sensitive and cost-effective logistics. In a multi-channel world, where online retailers are promising next day or even same day delivery, there is a high demand for efficient logistics operations.

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