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UK warehouse lettings boosted by online shopping boom

·1-min read
Warehouse landlord Segro has agreed a new letting in Deptford (sergo)
Warehouse landlord Segro has agreed a new letting in Deptford (sergo)

Ecommerce businesses responding to high customer demand during the pandemic, have contributed to a jump in warehousing lettings, figures show.

Deals for 15 million square feet in the industrial and logistics UK property market were done in the three months to March 31. That marked the strongest on record for a first quarter, up 44% from a year earlier and 21% above the five year quarterly average.

It was slightly down on the prior three quarters, but property agent Lambert Smith Hampton pointed out that the recent data was not as heavily skewed by especially large deals.

The firm said third party logistics operators and online retailers were active, together accounting for 63% of take-up.

James Polson, head of industrial and logistics at LSH said: “2020’s record take-up will be a tough act to follow but, given the strength of demand at present, I expect 2021 to give last year a very good run for its money.”

The research came on the same day that warehouse landlord Segro said it has agreed a 3,500 square feet letting in Deptford with Gorillas, a rapid grocery delivery service.

Alan Holland, managing director, Greater London at Segro, said: “The emergence of rapid grocery delivery services is just the latest in a long line of e-commerce disruptors within the retail sector.”

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