Optimism in the UK logistics sector despite Brexit uncertainty
Property Week, Savills and Tritax Symmetry (in association with Analytiqa) have published the results of their third annual market census. The market census surveys developers, occupiers and agents and provides valuable insight into the current view within the UK industrial and logistics sector.
Despite the uncertainty caused by Brexit negotiations and other general challenges, the market census reveals a fairly positive outlook for the UK industrial and logistics sector. Five key takeaways from the market census as follows:
- 60% of occupiers who responded to the market census are of the view that they will require more industrial and logistics space over the next two years;
- 86% of developers, agents, investors and landowners believe that industrial and logistics take-up will rise or remain similar compared with this year;
- Employment in logistics facilities is a key concern for nearly a quarter of respondents to the market census due to a shortage of available workers. Respondents believe that this issue will be alleviated by the rise of technology and automation in warehouses (84% of developers and landowners believe that technology will have a game changing or big impact on supply chains in the coming year);
- A shortage of available industrial and logistics stock was highlighted as a key issue by a third of respondents. The location of such stock is key and the sector needs to reach a better understanding on final mile delivery requirements; and
- Developers and landowners continue to highlight the planning process as a key challenge to the industrial and logistics sector. The planning process continues to favour housing schemes over logistics developments.