Firms seek more warehouse space during coronavirus crisis
A number of companies launched searches for warehouse space last month when the coronavirus crisis intensified, as firms rushed to keep up with shopper demands, it has emerged.
Property agent Knight Frank’s enquiry tracker shows there is an immediate need for up to 3.2 million square feet of industrial space nationwide for short-term occupation. The space could be used for as little as two weeks and up to 12 months.
Its tracker points to 10 searches that were launched after March 23, when the Prime Minister told Brits to start staying at home. A number of other firms started looking earlier in March.
Charles Binks, head of industrial and logistics at Knight Frank, said: “Despite the current lockdown, which brought markets to a standstill, we have received a number of short term requirements.”
He added that many would-be tenants “need space for the time being to cope with the current increase in customer levels but want to be able to leave this when the crisis subsides. Landlords are accommodating for this flexibility, especially for food and healthcare supply businesses”.
Businesses that have recently reported a spike in demand include supermarkets and DIY retailers, with people looking to work on home projects during the lockdown. Many firms need more storage and delivery space to cope.
Oliver du Sautoy, head of research at agent Lambert Smith Hampton, said: “A plethora of internet retailers are stretching and flexing as best they can to quickly adapt to increased online orders. At the same time, we continue to see the UK’s major supermarkets recruiting thousands of temporary staff to keep the nation fed."
He said "plenty of companies are urgently hunting out short-term space solutions".
