The commercial property market has been a big victim of the coronavirus pandemic, but demand for warehouses — where goods can be stored and processed — is booming, as the pandemic has led to a surge in people buying essentials online.
Demand for logistics and distribution space across the U.K. rose to a record in the third quarter, as online retailers expanded their supply chains to address consumer needs during the coronavirus pandemic.
Warehouse owners leased out 13.3 million square feet in the three months through September, 111% higher than the same period in 2019, according to global real estate adviser CBRE. Online retailers accounted for a third of demand, reflecting the shift in shopping trends.
“The extraordinary level of takeup seen in Q2 has now been exceeded in Q3. To put the numbers into context, the past six months takeup exceeds the annual total for eight of the past