South West industrial space shortage could lead to ‘skyscraper sheds’
An unprecedented shortage of industrial space in the South West could result in growing number of ‘skyscraper sheds’.
Latest data from global real estate advisor Colliers International shows the UK has just over a year’s worth of industrial space left – just 1.3 years nationally, and even less in the South West where industrial availability has declined by 61% since 2009 and just 1.2 years of supply remain.
Tim Davies, head of Industrial and Logistics for the South West at Colliers International said this could result in the construction of higher warehouses.
He said: “UK industrial availability has fallen on average 62% since 2009, and industrial supply is likely to fall further due to continued demand from e-commerce, lower levels of speculative starts, and the loss of industrial commercial land for other uses such as residential.
“The development of new distribution facilities is crucial to economic growth in the South West, and it is not inconceivable that developers will follow the example of places such as Hong Kong, Singapore and Japan and build ‘skyscraper sheds’ of several storeys in height.
“Already in the South West we have seen Bristol become the most expensive place in the UK in which to rent industrial space outside London and the South East, following a significant acceleration in industrial rents resulting from stock in the region being at an all-time low. In addition requirement for space is increasing, driven by the demand of e-commerce for extensive warehouse space.”