"The UK will need an extra 92 million square feet of warehouse space by 2024 – that’s an area of land equivalent in size to around 1,200 football pitches!"
It’s also changed the way in which we shop. The retail landscape has shifted dramatically in the last year mainly due to local and national lockdowns forcing store closures and social distancing measures aimed at protecting the public’s health.
So instead of simply popping to the supermarket to pick up something for dinner or spending a Saturday afternoon browsing the aisles in our favourite high street shops, more and more of us are buying what we need online.
According to the latest figures from the Office for National Statistics1 (ONS), all sectors of retail reported large increases in total online sales in 2020 with the amount spent rising by 46.1% compared with 2019, the largest annual increase since it started keeping records in 2008.
Food retailers saw the largest increase in online sales of 79.3% for the year, a record annual rise for the sector, with department stores, household goods shops and others all recording record increases.
The explosion in demand for online shopping isn’t just confined to the big supermarkets and the leading high street names either. ONS figures also show there was a rise in the number of new companies registered in the second half of 2020 as people started their own businesses in the wake of the pandemic, many of them online.
It all means that the UK is going to need more warehouse space to store all of these online orders in the coming years – a lot more space. Research undertaken by global real estate advisor Knight Frank has found that growth in e-commerce means the UK will need an extra 92 million square feet of warehouse space by 2024 – that’s an area of land equivalent in size to around 1,200 football pitches!
So where do you go if you’re approached by a client who’s looking for more space for their business and needs to access a mortgage to finance the purchase of a warehouse?
If you haven’t dealt with one before, arranging a commercial mortgage can seem quite daunting, so finding the right lender who can talk you through the process and ensure you’re paired with the most suitable lending solution is essential. Buying a warehouse is a big step for any business and needs careful planning to ensure it meets their needs in the coming years.
Fortunately specialist lenders like InterBay Commercial are ideally placed to help you find your client the right product.
We specialise in supporting commercial, semi-commercial and buy to let applications and we’re experts in providing bespoke solutions for brokers and their clients. Our teams work together to craft tailored solutions to support borrowers with their lending goals. With our extensive market knowledge, experienced team and range of products, we’re determined to say ‘yes’ when others say ‘no’. And now’s a great time to get in touch as we’ve just introduce some rate reductions across our commercial and semi-commercial product ranges.
With people’s shopping habits changing and internet shopping looking as though it’s here to stay, it could be worth getting in touch with a specialist lender such as InterBay Commercial who have a proven track record, coupled with the expertise and know-how to help you find the right solution for your client’s needs.
