Internet shopping to shape sheds of the future

THE internet age and the changing face of retail will shape the next generation of warehouses and industrial buildings, a property seminar heard.

The commercial property sector is seeing a growing desire for large-scale sheds designed specifically for logistics hubs serving online retail operations, according to Carl Durrant, industrial partner with Jones Lang LaSalle.

He told delegates at JLL’s Summer Market Briefing that internet shopping had become a “massive growth area”.

“About 8% of all retail sales are done on the internet but predictions suggest this could reach as high as 20%,” he said.

“This trend is driving new warehouses such as the one opened by Gap in Stafford last summer (below).

“On the back of internet sales, you are now getting a stock of new warehouses which are cross docked, with many doors, and not particularly tall. The internet is a driving force in this market.”

Mr Durrant cited other examples from the region such as Europa’s new 155,000 sq ft parcel hub and the 38,000 sq ft pre-let to builders merchants Selco, both in north Birmingham.

He said there would also be a rise in the development of energy production plants for the waste and recycling sectors such as Biffa’s new 20-acre energy waste plant in Cannock.

National investment director Ed Gamble gave an overview of the Birmingham investment market at the event, held at city’s Hotel du Vin.

He said only seven deals were completed in the city during 2010 but these were worth £420m, more than in 2007, 2008 and 2009 and only slightly less than in 2006 when 19 transactions were completed.

The 2010 figure was distorted, he said, by the sale of One Snowhill to Commerz Real for £126m and the part sale of Brindleyplace to Hines and Moorfield for £190m.

In 2011 so far, only two deals have been completed in Birmingham worth just £12m.

Also speaking at the event were head of EMEA research Grant Fitzner on the economic outlook, partner Michael Brough on residential and director Jonathan Fear on offices.