Despite sales growth back on the high street, demand for online retail services is still up, which means expansion in warehouse space is an ever-growing necessity.

It was only just over a decade ago, when seeing many old factory sites falling into disrepair was a familiar scene across the UK. Ten years on and these sites are radically being developed for warehousing locations to support online retail businesses. With the added advantage of far-reaching sites and accessible routes to major road networks, they are perfect for expanding businesses who are looking to fulfil customer orders as efficiently as possible.

The challenge now is in building warehouse property quick enough to meet expansion demands. Subsequently the time that it takes to build is just not quick enough and so the price for renting warehouse space is rising at a premium compared to pre-pandemic times.

“Some 11.3 million sq ft was taken in the first three months of the year, 11% up on the five-year average in quarter one”, according to thegrocer.co.uk

The largest region for warehouse space development is in the Midlands which ‘accounts for 47% of new take-up’, according to Len Rosso Colliers, head of industrial and logistics.

Amazon Warehouse space expansion

This comes at a time when Amazon has been shamed for buying up too much warehouse space following their astronomical growth throughout the pandemic. Since the re-opening of high-street shops, consumers have sought other means of shopping other than Amazon and so their growth ambitions have been jilted and subsequently the warehouse space hasn’t been required. Consequently, Amazon FBA partners are being asked to pay more in fees to cover the empty warehouse costs, which is impacting on their business profits.

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