Demand for industrial and logistics space has continued its upward trajectory over the past 12 months, despite the challenges brought on by the coronavirus pandemic, according to the latest research.
The research, conducted by global property consultancy firm Knight Frank, indicates that while many sectors of commercial property, particularly those in the retail, hospitality and office sectors, have faced considerable challenges, changing consumer habits have benefitted other sectors.
With more consumers moving towards online shopping, through necessity at times due to lockdown measures closing physical retail stores, the demand for logistics space has increased significantly.
The first two lockdowns in England have disrupted businesses in a variety of ways that has meant that they have had to pivot and find new solutions, and the impact on commercial landlords in many sectors has been severe.
The research states that landlords in the retail and leisure sector have seen a 28 per cent shortfall in rent due, according to the latest figures, even after 60 days over the last three quarters of 2020.
The extension of the moratorium on tenant evictions has also had an impact, which could mean that some occupiers will not have paid rent for almost 12 months.
However, logistics landlords have seen a significant increase in values because of the acceleration in the growth of the e-commerce sector since the first lockdown was introduced in March 2020.
Experts are now forecasting growth between 1.7 per cent and 2.3 per cent in the logistics and industrial commercial property sectors – the highest in more than four years.
For help and advice on matters relating to commercial property, contact our Nick Davies at Mackrell.Solicitors today.
Latest posts by Nick Davies (see all)
- New Model Tenancy Agreement prevents blanket ban on pets - February 17, 2021
- Commercial Property: New rental valuation scheme to help commercial landlords ahead of ‘Revaluation 2023’ - February 5, 2021
- Commercial property: Demand for industrial and logistics space continues to grow - January 11, 2021