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Warehouse demand to increase by 24.6 million sq ft

TAGS: News Savills
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New housing developments will provide demand for another 24.6 million sq ft of warehousing by 2025.

The calculation by Savills will add to concerns that demand for extra logistics floorspace is massively outpacing supply.

Savills say the new warehousing will be needed to meet the supply requirements of 356,000 new homes due to be built in the next four years.

The calculation is based on the assumption that each household needs 69 sq ft of warehouse space to support it.

Much of the floorspace will be in suburban locations with limited prospects for supply. Savills looked at the current levels of warehouse availability in the top 20 local authorities that are expected to see rural housing demand increase and say there is a shortfall of almost 5 million sq ft.

“”In rural areas this could mean the release of land for new industrial development or the repurposing of existing structures on agricultural land, an option that has the greatest potential when located near major roads and highways,” said Kevin Mofid, head of industrial and logistics research at Savills.

Farms and estates with good access to the road network as well as high levels of security may be suitable for providing the last mile delivery to service the growing consumer base needs, Savills said.

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