As the demand for warehouse space soars, supply can’t seem to keep pace – which is having a knock on effect for both landlords and their occupiers.
The impact of the pandemic on the Logistics & Warehouse markets have been significant with the lowest vacancy rate of 2.8% for industrial properties ever having been recently recorded.
Whilst occupiers continue to perform strongly and need more space, they are able to maintain their margins by raising their rental offers to ensure quality space is secured. Savills reports that this growth trend is not set to slow down anytime soon.
For obvious reasons, location has always been critical to selecting the right base – however other inflationary measures need to be combined when making decisions at present, due to the rising costs of fuel and energy for example.
Savills have written this helpful and engaging report which highlights the key factors that need to be considered by Occupiers when sourcing new industrial or warehouse premises, and also breaks down the associated costs, advising how to accurately evaluate the question of affordability for a given property….