Yahoo Finance UK supply chain crisis likely to boost demand for warehouse space, Segro predicts
The UK’s supply chain crisis is poised to fuel more demand for warehouse space, industrial property giant Segro has predicted.
A spokesman for the FTSE 100 company told the Evening Standard: “The experience during the pandemic and the current supply chain challenges mean that our customers are thinking much more about supply chain resilience, and we expect this to lead to increasing demand for warehouse space closer to final destinations in the medium term.”
The comment came as the landlord and developer published a trading update.
It is among firms to have seen high demand for storage and distribution space during the pandemic as retailers sought to cope with more online orders.
Segro said it secured £26 million of new headline rent in the three months to September 30, up from £16 million in the third quarter of 2020.
The vacancy rate across the firm’s estate has reduced to 3.2% from 4.3%.
Segro’s chief executive David Sleath said: “We head into the final months of 2021 with confidence in our ability to drive further sustainable growth in rental income, earnings and dividends.”
Recent deals the company has agreed include with Netflix for space in Enfield. Meanwhile, earlier this week Segro said it was part of a joint venture working to bring forward a new multi-storey industrial development in Brent.
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