The pandemic has accelerated the already shifting nature of commercial businesses in the country. There are huge increases in online business and with this comes the increasing demand for warehousing and logistics hubs. Pressure for logistics and warehousing spaces is at record levels, which means that as well as changes in the case of existing units from current uses to this use, there is also a requirement to create new units to satisfy the demand.
There are several factors to be taken into account when considering either renting or buying commercial property of this type, which largely depends on the exact nature of the business. These include matters such as:
- The amount of space required
- The location – relating to customers, delivery routes/transport links, etc.
- The availability of a workforce
- Business specific criteria – e.g. businesses that require certain goods to be stored at specific temperatures
- Is the location/size of unit likely a short or long-term requirement
The huge increase in e-commerce has seen online retail dominate this particular sector of commercial property, with it making up 42% of the volume of warehousing (according to Statista). The signs are that prices of these properties are likely to increase over the next few years, which is why investors favour this sector.
As well as the aforementioned changes, we have seen a decrease in the hospitality and office space sectors due to the effects of the pandemic. For example, it has been noted that large commercial property spaces on the outskirts of towns are being redeveloped from office spaces into logistics and warehousing properties.
Northamptonshire sits within the Golden Triangle for the logistics sector, so called because logistics companies and online retail giants choose the area because it’s possible to get to more than 90% of the UK population within a four-hour drive. This should see the county thrive as evidenced by the current investment on new logistics sites across the area.
Wilson Browne Solicitors is a previous winner of the Northamptonshire Logistics Forum Awards’ Team of the Year category and acts for a number of logistics companies of all sizes, both local and national.
Contact our sector experts for a free initial chat on 0800 088 6004 or visit www.wilsonbrowne.co.uk
