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Survey casts doubt on land availability for eComm

30 July 2020

Research undertaken by real estate advisor Colliers suggest there may not be sufficient land to support rapid eComm expansion in the UK.

The survey revealed 89% of respondents did not believe that there was enough warehouse and logistics development land to accommodate the future expected growth of last mile deliveries in the UK.

Colliers conducted research with over 240 occupiers, landlords and real estate professionals.

The real estate firm suggested that costs associated with eComm would rise, driven by sustainability, supply and demand as well as logistic chain factors.

It warned consumers must be willing to share the added costs with retailers if both are to benefit. However, according to Colliers, this is not expected to occur in the near-term as retailers are currently in the midst of battling to defend their market share pre-COVID-19 with their prime focus on sales.

Len Rosso, head of industrial and logistics at Colliers International said: “There is currently a balancing act for retailers and logistics operators between increasing costs, meeting customer expectations and environmental issues which will become more pressurised as the number of people shopping online increases.”