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The Industrial Asset Class is Booming in the UK and There's One Big Reason Why...

Re-Leased 29 July 2019

The industrial property market is experiencing an exciting and long lasting rise in demand. While current economic uncertainty has rattled other asset classes, the industrial property sector has not faltered.

In the UK, the industrial property sector resides at a vacancy level of approximately 5% according to data, which represents an all-time low.

The rise in demand for industrial property – particularly warehouses – is linked to ongoing change within the retail sector.

Demand for retail assets has fallen dramatically in recent years as consumer preferences shift to embrace e-commerce.

Retailers who were traditionally found in brick and mortar retail properties now seek warehouses to fulfil their e-commerce needs, and pre-established e-commerce businesses continually seek expansion due to ever-increasing consumer demand.

In areas of the UK such as the East of England and Birmingham, demand for warehouses continues to outpace availability.

As the dynamic change in retail operations pushes the industrial sector closer to cities, space limitations are driving the price of industrial units upwards.

What some industry thought leaders are calling the industrial boom of 2019 is ultimately surfacing an astounding shift: around 54% of new industrial and logistics properties are taken up by retail businesses, as industry reports suggest.

This is reflective of the continued shift by the retail sector to go online and require large warehouses and factory sites to house inventory – in 2018 the industrial asset class was a stand-out performer.

For commercial landlords, investing in industrial and logistics asset classes and sectors is a good call: rents are rising, demand is sky-rocketing, vacancies are at an all time low, and the overall value of the properties are up, too.

The ongoing prosperity of the industrial property market has consolidated the need for property managers and landlords to adopt technology to assist the growth of their business.

For example, James Industrial Limited’s property manager Mark Groves can speak on behalf of the growth of the industrial asset class in the UK. But for his team their individual business and portfolio growth can be attributed to a key addition to their business––and that is adopting Re-Leased to run their portfolio.

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Read the full case study to see how Re-Leased has impressed Mark's team on a number of levels, and why they chose Re-Leased to take their business to the next level.

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