Boom in logistics driven by e-sales

THE battle for logistics space is continuing to intensify despite the cost-of-living crisis and shoppers’ return to the high street, according to new data.

Demand for warehouses soared during the pandemic as shoppers increasingly moved online.

However, new figures from real estate experts at Colliers reveal that take-up and prices for logistics space have continued to increase despite the easing of restrictions and pressure on consumer spending.

Andrea Ferranti, head of industrial and logistics research at Colliers, said the development of new sites is unable to keep up with demand, thus causing a surge in prices.

“The demand is huge and the speed of developments means we don’t see any significant change in the next 18 months,” she said.

“It’s really difficult to get planning for these sites and there are a lot of requirements when it comes to locations and size, so that limits the ability for growth too.”

Colliers said take-up of large units – more than 100,000sq feet – grew to a total of 11.3 million square feet in the first quarter of 2022.

The company said this represents an 11 per cent rise on the five-year average for the quarter, and a 1.9% monthly increase.