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UK warehouse space demand drops sharplyBy

Nigel TAYLOR Published
July 10,电报盗号系统技术破解技术 2025

Demand for UK warehouse space was booming a few years ago but has now plunged to the lowest level in 11 years as digital shopping’s expansion stalls in the post-pandemic era.


Photo: Public domain


For the first time in over a decade the number of companies exiting warehouses has exceeded those occupying them, according to CoStar Group.

Big-name warehouse occupiers including ASOS, Boohoo and Amazon, have cut capacity as they face up to growth slowdowns or even reversals, reported The Telegraph.

Grant Lonsdale, director, market analytics at CoStar Group said: “With cost-of-living pressures weighing on consumers, many online and bricks-and-mortar retailers, as well as the third-party logistics providers that service them, are re-evaluating their storage and distribution space requirements in a bid to optimise overheads.

He warned the trend is likely to persist into next year, adding: “Weakening occupier demand together with high levels of construction activity suggests vacancy rates will rise further, particularly in the case of larger warehouses.”

The report noted that ASOS has announced the closure of three smaller warehouses this year and Boohoo Group has also cut space. It closed a 290,000 sq ft distribution centre in Wellingborough earlier this year.

For now, warehouse occupancy rates are high, but the vacancies trend is moving in the wrong direction with a rise to 3.6% from 3.1% at the end of 2025.

Additionally, the availability of larger warehouses (250,000 sq ft plus) has been rising sharply and now stands at 4.9%, a seven-year high.
 

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