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Urban logistics hubs to replace retail parks

Unwanted out-of-town shopping centres and retail parks could be converted into urban logistics hubs.

Land around Sheffield’s Meadowhall shopping centre, where British Land own a site originally intended for expansion of the retail floorspace, is likely to be one of the first locations to see urban logistics development.

That is the latest plan from British Land, one of the UK’s largest retail landlords, who say they have identified potential for up to 1.5 million sq ft of logistics in their shopping centres.

Two factors helped prompt the decision: rents on retail parks and urban logistics rents are now more or less equivalent, and that demand for logistics floorspace is growing whilst demand for retail parks is shrinking.

In addition to last mile warehousing, spare retail park space could become offices or new homes.

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