In this article, we’ll look at the costs of renting a small warehouse in England. We’ll also look at the average size of an English warehouse and what the growth in online retail has done to the warehousing industry. Also, we’ll discuss the locations where the largest warehouse companies are based. Then, we’ll look at the impact of Amazon’s growth on the UK warehousing industry.
Cost of renting a small warehouse in England
A warehouse is the perfect space for a business that needs to move its products from point A to point B. A warehouse offers plenty of modern facilities and gives businesses an opportunity to grow without having to spend too much on rent and utilities. These spaces are easily accessible and come with ample parking options. In addition, they can provide the space necessary for all business requirements. A small warehouse rental in England can save you money in rent and utility costs while providing plenty of space for storing goods.
Renting a small warehouse in England can cost you around PS1.5 million, and the average size of an industrial space in London is 4,000 square feet. Of course, the price will also depend on the location and size of the warehouse, but the most expensive areas are those in central London or near airports. Both locations are popular with businesses, so property costs are high. However, renting a smaller warehouse in England for less than a year will only cost you PS1,000 a month.
Locations for warehouse spending
The industrial and logistics sector is looking at new ways to meet the surge in demand for space created by the COVID-19 pandemic. Amazon has just announced plans to open more delivery bases and warehouses in England, illustrating the trend from physical to online shopping. Compared to the last decade, the number of new business premises in England has nearly doubled. However, the number of people employed in transport and storage has barely increased. As of December 2021, employment in this industry was only 20% higher than the year before.
The golden triangle is growing, and this pattern can be seen all over England. It has expanded north and south and east, with the largest changes occurring in its core. For example, the golden triangle extends into northern England, from northamptonshire to Peterborough to southern Yorkshire. The golden triangle is still a hot spot for warehouse spending, but the growth is shifting away from the golden triangle towards the east and south. Locations for England small warehouse spending
Size of a typical warehouse in England
The golden triangle, a region characterized by dense warehouses and industrial parks, is expanding north, east, and south. According to Kevin Mofid, director of data and research at The Warehouse Council, a typical small warehouse in the UK is now over 31,000 square metres, or more than four times the size of a traditional brick-and-mortar warehouse. The growth is attributed in part to the booming online retail industry, which demands a larger logistics footprint than a traditional brick-and-mortar shop. Consequently, the average warehouse has increased from 20,160 square metres to 31,590 square metres over the past six years.
The ‘Golden Triangle’ represents about 35% of the warehouse stock in the UK, but since then, the number of warehouses has shifted eastwards, with an increase of 28% in the East of England and a three-fold increase in the South East. Companies using warehouse space can be divided into different categories, but some do not fall into any of them. For example, waste management companies occupy nearly one quarter of all warehouse space in the UK.
Impact of online retail boom on the UK warehousing sector
In the UK, a new report highlights the explosion of e-commerce, causing a 614% increase in UK warehouse occupancy. This rapid expansion is forcing companies to increase their physical warehouse space, with the average UK warehouse now covering a space of 31.54 square metres. The UK Warehousing Association has commissioned the study to examine how this is impacting the UK small warehouse sector.
In addition to examining the growth of online retail, new entrants must develop a successful strategy to build awareness among U.K. customers. Fortunately, the U.K. is a highly receptive market to new entrants. Domestic players already have solid relationships with UK consumers, and international companies must keep pace with the ever-changing landscape. In addition, it is important to continually adapt business models and marketing messages to reflect the changing needs of the U.K. market.