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Construction in the Warehouse Sector - UK 2009-2013 Product Image

Construction in the Warehouse Sector - UK 2009-2013

  • ID: 1771966
  • February 2009
  • Region: United Kingdom
  • 60 pages
  • AMA Research

FEATURED COMPANIES

  • Bowmer & Kirkland
  • Buckingham Construction
  • Fitzpatrick
  • Henry Boot Plc
  • John Sisk & Son
  • McLaren Construction
  • MORE

The “Construction in the Warehouse Sector – UK 2009-2013” report should be of particular interest to developers, occupiers, logistics companies and construction professionals and provides a comprehensive review of the warehouse property sector.

Key areas in the report:

- An overall review of the UK warehouse sector with forecasts for development over the next few years.
- A review of warehouse occupiers by end sector and assess how the retail sector is continuing to drive demand, particularly for large warehouses over 10,000 sq. m.
- Detailed assessment of warehouse construction output, together with estimated forecasts for development up to 2013
- Review of the key issues of demand, availability, take-up rates, rents and speculative construction for the regional warehouse markets in Greater London, South East & East, South West & Wales, East & West Midlands etc.
- Areas of particular interest:-
- Review of the warehouse development pipeline across the UK and details of key schemes currently under construction and those expected to complete during 2009.
- Changing patterns of distribution within the UK warehousing market
- READ MORE >

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Bowmer & Kirkland
  • Buckingham Construction
  • Fitzpatrick
  • Henry Boot Plc
  • John Sisk & Son
  • McLaren Construction
  • MORE

1. INTRODUCTION

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS

3. THE WAREHOUSE MARKET IN THE UK
3.1 DEFINITIONS
3.2 THE WAREHOUSING SECTOR IN THE UK
3.3 WAREHOUSE OCCUPIERS BY END SECTOR
3.3.1 Retail Warehousing
3.4 WAREHOUSE AVAILABILITY
3.5 DEMAND & TAKE UP
3.6 RENTAL LEVELS
3.7 DISTRIBUTION OF FREIGHT
3.7.1 Road Freight
3.7.2 Rail Freight
3.7.3 Ports & Waterways
3.7.4 Air Freight
3.8 REGIONAL ANALYSIS OF THE WAREHOUSING SECTOR
3.8.1 Greater London
3.8.2 South East & East
3.8.3 South West & Wales
3.8.4 East & West Midlands
3.8.5 North East & Scotland
3.9 OUTLOOK FOR THE WAREHOUSE SECTOR IN 2009 AND BEYOND

4. CONSTRUCTION MARKET FOR WAREHOUSES
4.1 CONSTRUCTION MARKET OVERVIEW
4.1.1 Value of Total Output – Construction New Work
4.1.2 Output in 2008
4.1.3 Outlook for 2009 and Beyond
4.2 CONTRACTORS OUTPUT IN THE WAREHOUSING SECTOR
4.3 WAREHOUSING – NEW DEVELOPMENT PIPELINE
4.3.1 Speculative Development
4.3.2 Regional Pipeline

5. KEY ISSUES AFFECTING THE WAREHOUSE SECTOR
5.1 THE ECONOMY AND IMPACT OF THE ‘CREDIT CRUNCH’
5.1.1 Economic Indicators
5.1.2 Manufacturing Output
5.1.3 Consumer Spending and Inflation
5.2 LEGISLATIVE DRIVERS
5.2.1 Energy Performance of Buildings Directive
5.2.2 Empty Rates Relief
5.2.3 EU Working Time Directive (WTD)
5.3 E COMMERCE AND WAREHOUSING

6. CONSTRUCTION MARKET SUPPLY IN THE WAREHOUSING SECTOR
6.1 STRUCTURE OF THE CONTRACTING INDUSTRY
6.1.1 Consolidation in the Construction Industry – Impact of the ‘Credit Crunch’
6.2 LEADING CONTRACTORS IN THE INDUSTRIAL & WAREHOUSING SECTORS
6.2.1 Overview
6.3 KEY CONTRACTOR PROFILES

Statistics

Chart 1: Warehouse Completions By Type (Design & Build / Speculative - 2003-2008 (%)
Chart 2: Take Up Of New Warehousing By Sector 2008 – Food, Non-Food, Logistics, Manufacturing
Chart 3: Retail Warehouse Development Pipeline (Proposed, Planning Consent 2002 – 2008 (Million Sq. M.)
Chart 4: Available Warehouse Floor-Space In The UK As At July 2008 (M Sq. M.)
Table 5: Warehouse Property Availability By Region As At July 2008 (Million Sq. M.)
Chart 6: Take Up Of Warehouse Space In The UK 2003 – 2008 (Million Sq. Ft)
Table 7: UK Warehouse Market - Recent Major Take-Up Transactions
Chart 8: Domestic Freight Transport By Mode 2008 (%)
Table 9: UK Warehousing Market – Regional Analysis – Availability, Space Take-Up, Space Under Construction And Rental Values
Chart 10: Value Of Construction Output New Work 2002-2013 (£ Billion)
Chart 11: New Construction Work– Output Q2 2007 To Q2 2008 – By Value (£ Billion At Current Prices)
Table 12: Contractors Output In The Warehousing Sector 2002-2013 (£M)
Chart 13: Value Of Warehousing Construction Output 2002-2013 (£ Billion)
Chart 14: Speculative Warehouse Floor-Space Under Construction 2005 – 2008 (Sq. M.)
Chart 15: Speculative Warehouse Floor-Space Under Construction By Region 2008
Table 16: Principal Speculative Warehouse Schemes Under Construction By Region, Size, Developer, Status And Estimated Completion Date In 2008
Chart 17: Manufacturing Output – All Industries Sept 2007 Sept 2008 (%)
Chart 18: Retail & Consumer Price Index Oct 2007 – Oct 2008 (%)
Chart 19: Online Retail Spending In The UK 2002 – 2008 (£Billion)
Table 20: Main Private Contractors - By Number Of Employees 2006 And 2007
Table 21: Leading Contractors Share Of Industrial & Warehousing Construction Work In 2007 (£M)

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Bowmer & Kirkland
  • Buckingham Construction
  • Fitzpatrick
  • Henry Boot Plc
  • John Sisk & Son
  • McLaren Construction
  • MORE

Growth in the warehousing and distribution sector has been significant in recent years, underpinned by strong growth in capital spending in the retail and distribution sector, with a number of retailers investing in additional floor space to improve sales and productivity. With some 150 million sq. m. of warehouse stock, the UK is one of the largest logistics markets in Europe. Of this, around 22% of space is in London and the South East and about the same proportion in the Midlands regions.

Demand for warehouse premises has remained high up to 2007, particularly for large, strategic warehouses, as companies sought to consolidate their supply chains. This development was strongly tied to continued expansion in retailing activity, and, in particular, the growing popularity of bulk retailing and online retailing. Speculative development continues to account for the majority share of all warehousing development with around 65%, compared with design and build and this trend has grown over the past 3 years, as the chart (left) shows.

Available warehousing floor-space stood at over 21m sq. m. in late-2008, with a gradual increase in availability over the past couple of years. Speculative development completions were stronger in 2007 than in any other year in the past decade. However, 2008 has seen speculative build levels declining due to the abolition of empty rates relief and the reduction of available speculative finance, with many banks now only providing funding if the developer has pre-let part of the scheme.

The deteriorating economic outlook, slowing consumer markets and declining business confidence across Europe has impacted on the warehousing sector as 2008 progressed. As a result, the supply pipeline is likely to become more restricted in future as finance becomes more difficult to obtain.

Given the effects of the ‘credit crunch’ on the wider economy, the impact on warehouse property markets and on new development, in particular, will become more apparent going forward in the amount of new construction activity. The recent decline in retail construction which almost inevitably will continue throughout 2009 will also affect the warehousing sector. Private warehouse construction output could have declined by as much as 20-25% in 2008 to reach around £1.8bn (from £2.4bn in 2007), with further falls of around 10-12% expected in 2009, with no significant growth in warehouse construction anticipated before 2011.

The economic downturn is re-shaping the warehousing market in the UK as the manufacturing, retail and logistics sectors seek to move to low cost locations, creating rental growth in many regional cities. Manufacturers are likely to continue moving their operations to lower cost locations in the foreseeable future, thus ensuring a steadily growing demand for logistics property.

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- Bowmer & Kirkland
- Buckingham Construction
- The Clugston Group
- Fitzpatrick
- Henry Boot Plc
- McLaren Construction
- Norwest Holst
- John Sisk & Son
- Taylor Woodrow Construction

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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