London industrial and distribution warehouses are top 2022 targets for developers
2021 was busy.
No-one could be surprised that the Covid online shopping boom led to unparalleled growth for the industrial and logistics sector as retailers replaced shops with ‘sheds’.
There are no signs that demand for warehouse space is slowing, but it’s not just the likes of Amazon that are experiencing growth, it’s smaller, industrial units too.
Savills’ Cross Sector Report for 2022 made for some interesting reading.
Lawrence Bowles, Director of Residential Research predicts that London industrial and distribution warehouses will be the top targets for developers this year.
All thanks to the “continued demand for last mile delivery and the rise and rise of internet retailing”, according to Bowles.
With finite stock available, the growing demand for smaller industrial units – for distribution and manufacturing – represents a huge opportunity for investors.
That’s why we homed in on MLIs (multi-let industrial properties) in densely populated areas last year, acquiring and upgrading four new units and letting them immediately.
This year, we’ll continue to focus on acquiring sheds in buoyant areas, making them better, and creating more spaces for storage and manufacturing on a smaller scale.
Are there any other sectors you think could produce sharper yields this year? I’d love to hear your opinion, so please do leave a comment below or send me a message.
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Formed in 2016, Preston & Preston Capital is a British property investment firm focused on long term ownership, leasing and active management of mixed-use, commercial and light industrial properties. We are constantly seeking new assets to develop and add to our growing high-yield portfolio.
