The UK could need more than 112m sq ft of new industrial and logistics floorspace, the area of more than 1,700 football pitches, over the next five years, according to the latest calculations from Knight Frank, based on current capacity utilisation rates.

The additional demand is linked to the UK’s growing population and its increasing dependence on distribution and manufacturing hubs. However, Knight Frank added that the long-term trend in manufacturing toward high-value sectors, as well as increased automation in the manufacturing and distribution sectors, could ease pressure on the UK’s industrial and logistics stock.

Population growth and urbanisation
Oxford economics forecasts the number of dwellings in the UK to rise by 958,640 over the next five years. London is expected to see the strongest growth (6.7% vs current stock), followed by the South East region. According to Knight Frank’s latest Future Gazing report, this growth will result in a high volume of additional delivery addresses that need to be serviced by logistics facilities.

Growing urban populations will also place greater pressure on industrial and logistics land in UK towns and cities. By 2033, 85.6% of the UK population is expected to be urban, compared to 84.5% today and 82.1% ten years ago. The UK’s ongoing shift toward city living will generate increased demand for urban industrial and logistics space in the coming years.