Thanks to the booming growth of e-commerce, warehouse space is in demand like never before. Retailers are beginning to realise that less physical selling area and more storage capacity are a necessity to truly take advantage of the digital age.

London has long seen a high appetite for warehouses near to the capital's trading districts, but now the effect is being seen across the UK, partly driven by investment projects like the Midlands Engine and the Northern Powerhouse.

The lack of space is becoming an alarming issue, with e-commerce performance outpacing the supply of property. Indeed, a chronic shortage of warehousing is forecast for the coming years, with industry giants like Amazon showing a pro-active attitude in acquiring developments.

Luckily, we have spent years building up our portfolio of units in many areas of the country, so retain a level of flexibility that many estate owners do not enjoy. One of our prime areas of focus has been the Midlands region; a thriving, entrepreneurial business zone with cheaper rents than the capital.

Rovex Business Park is an excellent example of this strategy. We purchased an historic Birmingham manufacturing facility and have modernised and renovated it. Warehousing space and industrial units with great transport links are now available. Interest is already high, with a number of leases completed!

Alma Street in Wolverhampton is another quality opportunity. Three large warehouses with 53 carparking spaces, in a secure self contained site, make this a must-consider option. Some reasons why Wolverhampton could be a great base for you are here.

Further north, Carlton Industrial Estate is one of our most attractive ventures. A single-storey facility that has good access to the M1 and comes with an additional 7 acres of land available. These types of opportunities are rare, and this property is bound to appeal to the larger e-commerce and logistics companies.

Already, 2017 has seen a high level of demand for warehouses and storage locations. When you analyse the latest data, it is not hard to see why:

• Online purchases now account for a quarter of all retail sales.

• E-commerce transactions in December 2016 were up 20% on the same period in 2015.

• Boxing day sales jumped 15% year on year.

Another important thing to note was that 12% of people bought with an alternative retailer due to their original choice not having items in stock!

Facts like these demonstrate that not only is digital here to stay, it is rapidly taking over, and now is the time to make sure you are well-positioned for the future.

Can you afford to miss out on the growth in digital retail? Do you need to start making plans for new premises?

Pall Mall Estates have a wide range of low cost commercial properties across the UK. Take a look at our available spaces here or get in touch with our experienced team here.

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