Your new warehouse could be built with North American money, experts are predicting.
US and Canadian investors are queueing up to help build new logistics floorspace to meet up to 6m sq ft of demand from warehouse operators.
Senior figures in Midlands property say a shortage of sites capable of taking 500,000 sq ft units – and strong continued demand – is encouraging overseas investors to help build the next wave of Golden Triangle sheds.
North American investors follow a wave of Asian investors – with strong interest from South Korea.
Earlier this year IM Properties sold a 700,000 sq ft warehouse at Hams Hall, Birmingham, to a South Korean buyer, whilst Mountpark sold the 1m sq ft Amazon warehouse at Bardon, Leicestershire, to South Korean investors for close to £125m.
Robert Rae, Managing Director & Principal at Avison Young, said: “Theirs is a lot of US and Canadian money coming into the Midlands ready to fund the next phase of development, and they particularly want to back the smaller developments.”
“The key issue they face is the lack of available land. The Birmingham to Northampton area is particularly short of sites capable of taking 500,000 sq ft of more, and there are very few sites east of Birmingham.”