Demand For New Industrial Warehouses Grows
According to Barbour ABI that produces construction intelligence services, there has been an increase in the demand for storage space for commercial ventures here in the UK in particular from businesses that operate online as they are seeking more space to hold goods pending delivery to customers. As a result, there will no doubt potentially have been an increase in the requirement for development finance from numerous businesses that either wish to own such premises outright or from landlords who wish to rent out commercial space.
It is estimated that in the UK this year there will be £3 billion of contracts earmarked for the building of warehouses. This is based upon the fact that in the first three quarters of 2018 warehouse construction contracts amounted to £2.2 billion – a significant amount of money. For the whole of 2016, there were £1.8 billion of warehouse construction contracts and in the whole of 2017 there were £2.4 billion of warehouse construction contracts.
Since 2016, it is the West Midlands and the East Midlands that has seen the biggest growth in the construction of new warehouses with £2.6 billion being spent.
Could this mean there is a tremendous opportunity for commercial landlords to invest in more warehouse space in the coming years? After all, surely it is quite possible that we are going to see an ever-increasing number of consumers buying goods online resulting in the need for more storage and distribution space. Could this lead to some landlords who buy and rent out domestic premises such as flats and houses switch to buying and renting out warehouse space. It will be interesting to monitor this in the next few years.
Of course, it is not just the high street banks and building societies that provide development finance for commercial premises. Over the years, an ever-increasing number of specialist lenders including peer to peer lenders have appeared in the development finance marketplace.
If you are looking for development finance then why not contact us and we will put you in touch with a commercial mortgage broker who has an extensive panel of lenders at their disposal as well as many years experience in helping businesses arrange suitable finance. We are keen to assist, so get in touch today and let us arrange the introduction to one or more suitable lenders. Rest assured, you should not be disappointed.