Well, the overall feeling in the market is that the global recession may really be over. Slow but sustained growth in production and shipping volume quarter on quarter for the last year has finally got us sticking our heads out of our shells and looking for opportunity.
But where are we looking for it?
There are two forces working to define where useful warehousing and distribution storage can be located.
First, there is a move towards smaller, lower value shipments and distribution of small loads, or even individual orders. E-commerce is changing the face of the industry. To make these smaller loads more efficient, there is a drive to locate warehousing and distribution space in large population centres, especially within a short hop of larger metropolitan areas, and near to existing transportation infrastructure. If your customers are taking advantage of, or even expecting you to provide same- or next-day shipping options, you can do this a lot less expensively if your goods are already within a few miles of millions of potential customers.
Now, where is the largest population cluster in Britain?
This trend shows a need for, and a drive towards using warehousing and distribution space in or around London.
The second factor driving the hottest location for warehouse space in the UK is the cost of industrial real estate. Everyone knows what the rents are like in London. As formerly empty spaces fill up as a result of the freshening economy, the cost of doing business in the city is skyrocketing.
So, we’re looking for London centrality, without London prices. We’re also looking for somewhere that has been somewhat overlooked up till now, and is only just beginning to fill up its warehousing space again. The answer will surprise only some of you. Essex.
All but part of greater London, Essex is right at the centre of the action in terms of transportation channels. The west and south of Essex are already art of London’s commuter belt. Any facility based in the southwest of Essex is effectively in London, but for the prices. Better still, industrial space is still to be had there, and business can still be done cheaply.
So, have a look at some of the warehousing and distribution opportunities in Essex, and get ready access to the bulk of your customers on the cheap. But hurry – everyone else has their eyes on Essex now too.