Demand for port-centric logistics space reportedly on the rise

Occupier demand for port-side logistics spaces is increasing, according to a report released by global real estate services provider, Savills.

Traditionally, logistics and warehousing space has been most desirable within the Midlands, due to the roughly four-hour driving time it takes to get to the majority of the country.

However, Savills has claimed that port-centric demand is on the rise through a desire to reduce road-miles, logistics costs, and warehousing overheads.

An example of this being a firm with two 250,000 sq ft sites at London Gateway and Port of Hull could yield 1.72% in rent savings compared to a 500,000 sq ft unit in a traditional location.

Meanwhile, the port-side location could still reach 85.4% of the population within 170 miles, between London Gateway and the Port of Hull.

Moreover, port-centric logistics spaces offer a company four-times efficiency in regard to sustainability.

Tim Morris, chief executive at UK Major Ports Group, said: “With sea miles much more carbon-efficient than other freight modes and the reduced handling requirements of immediate proximity, ports have a compelling green proposition.”

Kevin Mofid, head of industrial research at Savills, added that port-centric storage cuts “the number of handling stages”, thus “saving both time and money”.