Warehousing demand is an opportunity for farmers
New housing estimates for rural areas, coupled with the rising consumer demand for online retail even before Covid-19, means there is potentially a massive shortage of warehouse space.
Once dubbed the poor relation, the industrial and warehousing sector’s star is now in the ascendancy, with increasing potential in more rural areas according to Spotlight Rural Logistics, the latest sector research from Savills.
The predicted growth trajectory for online sales suggests many rural local authorities are forecast to have a significant shortfall of available warehouse space.
Our research is projecting a rise in the amount of new housing completions in rural areas which if built would create a need for a further 24.6 million sq ft of warehousing.
Increasingly, expanding farmers are finding that they have accumulated a portfolio of buildings that are structurally sound but no longer fit for purpose as modern farm machinery is much larger.
For example a former grain store could be suitable for conversion within permitted development rights. Location will always be key but the spectrum of operators’ needs is quite broad, presenting an opportunity for some rural landowners across Shropshire.
Rhydian Scurlock-Jones is director and head of rural at Savills in Telford
