The demand for industrial property, including sites designed to facilitate logistics, will strengthen in 2020 following the uncertainty experienced by the sector last year.
This is among the predictions made by Knight Frank about the prospects for the UK’s property sector in the coming 12 months.
According to the organisation, demand for urban fulfilment centres is expected to increase this year, as a growing number of businesses look for ways to ensure they’re able to deliver orders to customers as quickly and efficiently as possible.
Knight Frank also noted that there was an increase in the stock of industrial properties added to the UK market in 2019, with more new premises in the pipeline and expected to help meet demand in the market.
This means there could be opportunities for those that own industrial properties that are currently empty to find tenants if they ensure the buildings are up to standard.
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The trend for retailers seeking warehouse and industrial space was also highlighted by Tim Burden, director at Turley, in a recent interview with Insider Media.
He noted that many retailers have “adopted models based around next day deliver” and as a result there has been a surge in demand for “warehouse space to enable the logistics surrounding last mile services”.
Mr Burden added that places like Cambridge and Oxford are particularly desirable from this perspective, because of their access to motorways which allows businesses to connect easily with customers in many different parts of the UK.