Demand for logistic space is at records levels, but there is a shortage of warehouses and not enough land to build new ones. In order to expand their storage space, many businesses are building mezzanine flooring.
There is a need for extra logistics warehouses because of the rise of online shopping. According to the Office of National Statistics, online retailing represents 14.3% of the retail market and this is expected to rise to over 20% by the end of the decade. To cope with this expansion, extra storage space is needed.
Property consultants Savills reported that the demand for warehouse space hit its highest peak in 2016. The number of available warehouse spaces shrunk by 20% in March 2017 to the point where soon there could be more demand than supply. It is estimated that 18 million sq. ft. of new industrial space needs to be built each year, but there is not enough land available to build at this scale. Part of the reason that land is scarce is due to the number of new housing developments.
The land shortage has put pressure on releasing greenbelt land for industrial use. Birmingham Council has already done this by releasing 197 acres of greenbelt land for industrial development.
One solution that can help is to build mezzanine floors to create extra space. There has been increased demand for taller warehouses that can accommodate mezzanine floors.
For expert advice on how mezzanine flooring can expand your warehouse, talk to the experts at Greenoaks.