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Online shopping boom prompts Segro to continue expansion

Online shopping boom prompts Segro to continue expansion
9th March 2018

Online shopping boom prompts Segro to continue expansion

The huge boom enjoyed by the online shopping industry in the UK and Europe in recent years has shown no signs of abating, and the demand for well-located warehouses that can store, sort and package goods of a huge range of sizes has continued to grow, while massive advances in technology, including the use of robots to pick and sort stock, mean there is increasing pressure to make sure all spaces and systems are equipped to keep up with demand. All in all, logistics real estate is now considered one of the UK’s strongest property markets.

Indeed, international warehousing giant Segro – a FTSE 100 property company which builds warehouses for major global companies including Amazon – has announced that it is in the midst of building 1.2 million sq ft of warehouses to meet increasing storage demands, which will increase its portfolio by a fifth and generate an impressive £43 million in extra rent.

David Sleath, Chief Executive at Segro, explains; “Internet retailing is really starting to accelerate across continental Europe… The market is certainly the strongest it’s been in the 12 years I’ve been in the business, and that’s not just pockets, its everywhere, from UK to continental Europe.”

The company spent £702 million buying new buildings and land for development in 2017, a huge increase on its £245 million spending in 2016. The firm has also confirmed that it expects to spend at least another £350 million on its building plans in 2018.

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants. Image: greengage.env.

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