By James Morrison and Gary Marshall 2022-07-07T08:13:00
The combined impact of inflation plus materials and labour shortages is stretching developers of logistics centres – yet demand for this building type remains high
UK distribution centres have been a growth market for years, driven by the e-commerce boom. Appetite continues to be high, and availability of funding is therefore strong, particularly from North American investors seeking international opportunities.
Perhaps the most noticeable trend in logistics at present is that the market is buoyant in the face of staggering materials price hikes. The industrial market has experienced double-digit increases in build costs over the past 18 months – leading to an incredibly challenging time for market participants, where demand is high but supply of key elements is low.
This cost model will examine the factors influencing the hypothetical development and construction of a 160,000ft2 logistics building, focusing on the shell.
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