Business Report International

Online shops ‘need more warehouses’

Independent|Published

A worker gathers items for delivery from the warehouse floor at Amazon's distribution centre in Phoenix, Arizona. File photo: Reuters A worker gathers items for delivery from the warehouse floor at Amazon's distribution centre in Phoenix, Arizona. File photo: Reuters

London - Online retailers in the UK could face 10-percent rental hikes and delivery problems owing to an expected shortage of warehousing supply.

Companies from Amazon to Asos use warehouses, but any firm wanting to expand should look early and property developers should look to build more, according to a report.

There is less than a 10-month supply currently available of sheds that total over 100 000 square feet, said the report by Colliers International, UMC Architects, Kam Project Consultants and Total Logistics.

Steven Mitchell, Colliers International industrial and logistics director, said the shortfall in some areas, such as the South-east, could see rents increase between 5 and 10 percent by the end of 2016.

He warned that delivery times could lengthen unless the problem is addressed now.

The Independent