The shift to online shopping during lockdown has driven an explosion in demand for warehouse space, with 15 million sq ft of ‘super sheds’ built across the UK in 2020.
A total of 49 new larger distribution centres were built across the UK last year, according to real estate adviser Altus Group.
According to the firm, the 14.7m sq ft worth of newly built warehouse space, which equates to approximately 191 football pitches, roughly corresponds with the amount of physical retail space lost due to the closures of Debenhams and Arcadia’s respective store estates.
The majority of ‘super sheds’, which span more than 85,000 sq ft each, were built in the ‘Golden Triangle’ in the East Midlands, with 6 million sq ft worth of space built in the region last year.
Altus Group UK president Robert Hayton said: “Online-only retailers now account for 17% of the occupier base of the 100 biggest super sheds.
“Surging demand has led to major investment opportunities, particularly for overseas investors, as the race for space continues to intensify, which will undoubtedly impact tax liabilities at the next revaluation in 2023.”
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