Developers Neglecting Warehousing

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A recent report warned businesses of a potential shortage of warehouse space throughout Britain in 2011 due to a dearth of development.

Property consultants Lambert Smith Hampton’s (LSH) National Industrial and Distribution report said that in 2010 there was an 18.5 per cent increase in the amount of warehousing space in the UK compared to the previous year.

However, this warehouse space was swiftly snapped up by canny businesses and since then, there has been a lack of warehouse development in sought-after locations, such as East Anglia, the East Midlands, Greater London and the South-east, warned LSH – adding that last year, some 80 per cent of new warehouse take-up was in the secondhand or redeveloped market.

LSH director of logistics Michael Alderton said that “as we progress through 2011 it is unlikely that sufficient prime space will be available to meet the increased demand in the market.
“Developers have already responded to this by becoming active in strategic land-buying, with an expected return to speculative development in late 2011-early 2012 where demand is strong and space shortage most acute.”

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