At a parliamentary reception, the UK’s largest industrial landlords have warned that the shortage of new industrial property will cause long term obstacles on the path to economic recovery.
According to research from the British Property Federation (BPF), there is less than a years’ worth of Grade A supply on the market at the moment. This is in contrast to the demand for industrial space which is at a ten year high.
A Savills’ report shows that Grade A industrial space supply dropped to 22 million sq ft last year, which is a significant decrease compared to 2009’s figure of 94 million sq ft.
The landlords stressed to policy makers that they need to look at the industrial sector, which includes areas like warehouses, factories and data centres, as a necessity for the UK’s infrastructure.
A manifesto published by BPF has an industrial impact guide that explains the importance of the industrial sector and how it:
The BPF has created a new industrial committee to represent this sector. They have said that it is vital that central and local government create the right environment for new investment.
Chairman of the Industrial Committee and a Director at of Europe’s largest industrial property company Segro, Gareth Osborn, said: “There has never been a more crucial time for the industrial sector to speak up and be heard. With increasing demand and limited supply, changing retail habits and transport challenges, the sector has a great story to tell and is often misunderstood”.
He added that he will “look forward to engaging with policy makers and local authorities to ensure that the sector can continue to provide jobs and growth through sustainable development in the right places”.
Gwyn Stubbings, Planning Director at IDI Gazeley, Vice-Chair of the Committee, commented: “A renaissance in manufacturing in the UK, combined with significant investment in research and development activity, and a flourishing dynamic logistics economy have all transformed industrial property into the exciting, forward-looking sector we see today.
“The BPF Committee will provide the voice to ensure that local politicians and local communities understand these benefits, and that the policy and decision-making landscape encourages growth for the future”.
