Such is the demand for logistics warehouse investments that yields sub 4% are commonplace and investors are finding that they cannot source product to buy.
According to Savills latest Big Shed Briefing, investment volumes for distribution warehouses reached £4.7 billion in 2020, a 25% increase on 2019 figures and £500m higher than the previous watermark of £4.2 billion set in 2014. This is despite the fact capital markets all but ceased at the height of the initial Covid-19 lockdown.
In relation to the pandemic, Savills notes that 76% of all capital was deployed in the second half of the year once trading could resume in a Covid-secure manner.