The UKWA has commissioned and published a report that highlights a critical lack of real estate supply and appropriate development in the logistics sector. According to UKWA CEO Peter Ward, ‘Policy makers must move to legislate to allow for the growth of warehousing space or risk developing a critical pinch point for UK industry’.
The report, produced in association with leading property consultancy Savills, highlights three factors that point to a rapidly developing issue for UKPLC.
- Supply of warehouses in the UK is currently 32 million square feet
- There is a headline vacancy rate of 7.5%
- But 20% of the stock is not fit-for-purpose
The report was launched at a round table event, comprising prominent members of the logistics, retail and property sectors. The report, the event and the UKWA’s ongoing advocacy for action are framing the debate on the importance of securing the supply of appropriate real estate to the logistics industry.
Lack of supply is not the only issue
The study also revealed that land will become increasingly scare in prime logistics locations like the East Midlands. So it’s not just about lack of supply, attention also needs to be paid to the way that supply is used.
The UKWA’s appeal to policy makers
The UK economy relies on a supply of warehouse space that is fit for purpose and not addressing shortfalls now will negatively impact the UK economy. Peter Ward appeals, We call on policy makers, both nationally and locally, to acknowledge the importance of the logistics industry and to deliver policy which allows for the growth of the space required for our industry to continue delivering..