LondonMetric sees Brexit spark demand
Warehouse owner LondonMetric Property revealed yesterday that companies were seeking additional storage and distribution buildings to help avoid supply chain disruptions ahead of Britain’s planned departure from the European Union.
A raft of companies, unsettled by the uncertainty around Brexit, have announced plans to stockpile products ranging from drugs, chocolate, tiles and raw materials to parts for the engineering industry.
“There is growing evidence that occupiers are intensifying their search for additional distribution space both to increase near term storage capacity as well as longer term solutions to maximise the efficiency of their global supply chains in a post Brexit environment,” LondonMetric said in a statement.
“What we’re finding a little bit is there are companies who are getting into increasing inventory... We are having conversations with people who are conscious of an uncertain Brexit outcome,” chief executive Andrew Jones, inset, said.
LondonMetric had talked with companies in the automotive and healthcare sector.
Barely four months before Britain is due to leave the European Union, Prime Minister Theresa May has failed to get much of her own Conservative Party behind the agreement sealed with EU leaders, leaving open the possibility of a nodeal Brexit.
LondonMetric also echoed UK property sector bellwether British Land Company’s warning on falling values in the brick and mortar retail space.