Demand for warehouse space in England is growing, but supply is lagging behind. This article covers what you need to know about warehouse rental in England, including the costs involved and the best areas to rent a warehouse. Read on to discover the top three regions for warehouse rentals in England and learn about their advantages and disadvantages. Let’s also look at some of the most popular industries in England and why their locations are desirable for warehouses. There is no better time to lease a warehouse than now.
Demand outstrips supply
Demand outstripped supply in the UK warehouse rental market in the first quarter of 2018. The lettings market in England is booming, with interest from corporate tenants, students and university students increasing. The lettings market in England is set to rebalance later this year, when demand is expected to outstrip supply again. In London, the lettings market has experienced steady take-up in recent months, and the current situation is likely to continue in the near future.
The recent surge in UK warehouse rental demand is attributed to a sustained shift towards online shopping. The number of lettings over 100,000 square feet in the UK rose by three percent from the previous quarter, according to Colliers’ data. The increase in rental rates was cited as an indication of the continued strength of UK demand. The latest MSCI monthly industrial index showed a 1.9% rise in the UK during March.
Costs of renting a warehouse
Using a warehouse for your business expansion can reduce costs and increase efficiency. You can avoid the hassle of planning permission, groundworks, and construction costs by renting an existing warehouse and extending it to fit your expanding needs. However, make sure that you hire the right staff and have sufficient inventory. Read on to find out more about costs of renting a warehouse in England. There are three main factors that determine the rental price of a warehouse.
The average cost of renting a warehouse in England is around PS1.5 million. This price depends on size, location, and the type of warehouse. For example, the location of the warehouse matters a lot, as it affects the overall rental cost. In London, the most expensive locations are those that are near airports and central London, where property prices are high. Meanwhile, renting a small warehouse for a year will cost about PS1,000, while renting a giant warehouse will cost over PS3 million.
London has the highest rents
According to research by Cushman & Wakefield, London has the highest warehouse rental rents in the world. This is because of the limited amount of land available for big box warehouse developments. London also has a high demand for space, so warehouse rents are high by global standards. In fact, warehouse rents in London are more expensive than in Northampton, Bristol, Barcelona, and Beijing. Regardless of the region, however, it’s important to remember that London is not the only place with high warehouse rents.
For many years, landlords held a dominating position in the London real estate market, as businesses fought for prime locations near transport hubs, office buildings, and tourist hotspots. The result was that landlords were able to charge sky-high rents and lock retailers into leases with rising rents. However, the recent pandemic has altered the power dynamics between landlords and commercial property tenants.
Midlands has the lowest rents
According to latest research, the Midlands has the lowest warehouse rental rents across England, and is one of the fastest growing regions for industrial real estate. These warehouses are also strategically located, with good access to the M1 motorway, which connects the north and south of England. Also, East Midlands airport is a logistical boon for manufacturers, handling over 320,000 tonnes of cargo per annum, making it the UK’s busiest pure cargo airport.
In the Midlands, warehouse rental rents were the lowest in England, while London had the highest. While Inner and Outer London had different median monthly rents, the North East and the South East had similar prices. In terms of number of bedrooms, the highest monthly rents were found in Inner London, which averaged PS1,425 a month. The lowest monthly rent was PS420 in Kingston upon Hull, which was shared by Bexley, Croydon and Sutton.
Amazon is a major player in the market
The English warehouse rental market has seen a surge in activity since Amazon announced that it is expanding its operations across the country. The e-commerce giant has been a controversial company, attracting both investors and negative press over the abuse of its workers. The New York Times’ long exposé exposing Amazon’s practices revealed that Amazon has taken steps to avoid unionization and other workplace repercussions.
The e-commerce giant has a reputation for aggressive expansion and has increased its investment in warehouse space to two-thirds the size of its closest competitor. Amazon has also been aggressively expanding its delivery network, opening two-thirds more warehouses in the past year than Walmart. In the US alone, Amazon has opened more than a hundred new warehouses in the past year, but it is also working to reduce the delivery time for its products. In fact, the company has opened more than 75 new warehouses a year, and many of them are located within a mile of a school or playground.