29 May 2017 - Janet Bird
London has just eight months worth of warehouse space remaining as demand from online retailers exceeds availability, new research suggests.
Data from real estate advisor Colliers International has found that the average annual take up of industrial floor space around the capital has reached seven million square feet.
The supply in London is currently around 6.1 million square feet - just eight months worth at current levels of take up.
Indeed, Colliers' research suggests more than 1.3 million square feet of additional industrial floor space is required each year in Greater London to cope with online retail demand.
The agency points out that London has been losing industrial land at a rate of 250 acres a year, mainly to residential development.
Yet demand for warehousing space is increasing, as online retailers offer customers ever quicker deliveries in a bid to remain competitive.
Indeed, demand for warehouse space in west London is such that industrial land which was planned to be released to market gradually over the next 20 years has been used in just four.
Colliers are suggesting a possible solution to the problem would be to allow industrial and residential development to take place in the same place, so land can be used most efficiently.