Amazon Takes The Lions Share of UK Warehouse Space
A new report from Cushman & Wakefield has found that the multinational tech & E-commerce giant Amazon let as much as a third of UK warehousing space from June to September 2020. The spike in e-commerce demand has provided rapid growth to Amazon's continued expansion which includes a new 2.3 million sq ft letting at Panattoni Park in Swindon. Although Amazon has seen the biggest benefits the report found that 40% of new lettings the in same period came from e-commerce occupiers, a sharp rise year on year.
The implications of this, particularly in the case of Amazon will no doubt point towards more warehouse automation and robotics demand with those in the space needing to react and integrate well with other warehouse products and services. A separate report by Knight Frank predicts that there will be demand for 30 millions sq ft of logistics space rising to 92 million sq ft by 2024 at which point 32% of UK retail spend will be online. Whilst this all positive news for warehousing on the face of it, there are question marks of how this will leave certain providers and also how the retail market could be adversely effective by the rapid rise of a small number of large-commerce suppliers.