Industrial sheds prove pivotal in the rise of dark kitchens
The Internet was responsible for 32% of all retail spending in the first five months of 2021.
All those extra sales need to be stored and distributed from somewhere, which is why sheds continue to experience increasingly sharp yields.
As more and more retail moves online, demand for warehouse space is growing, and quickly. But it’s not just cardboard boxes that need to be stored and sent. It’s wine, beer, furniture and – notably – fresh food.
It’s rare to find someone who hasn’t tried the likes of Gousto or Hello Fresh, and now several other fresh food companies are getting in on the act too.
Deliveroo recently sought 13 units between 3,000 and 10,000 sq ft in London, in which to operate collections of restaurants, or “dark kitchens”.
Fast grocery delivery start-up, Getir, has opened multiple “dark store” sites across the UK, including one at our Red Lion investment. Delivery start-up Weezy required some 15 sites up to 4,000 sq ft across the UK plus another 35 in the capital.
Increased demand for last-mile space from such companies remains highly competitive, thanks to the change in consumer behaviour brought about by the pandemic.
As such, investing in the buildings where the last-mile magic happens promises excellent yields and continued growth. We are excited to continue our acquisition journey in this area (you can find out more about it all on our case studies page here).
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.
