CONSTRUCTION IN THE WAREHOUSE SECTOR UK 2009-2013

Table of Contents

1. INTRODUCTION 5

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 6

3. THE WAREHOUSE MARKET IN THE UK 10

• 3.1 DEFINITIONS 10
• 3.2 THE WAREHOUSING SECTOR IN THE UK 10
• 3.3 WAREHOUSE OCCUPIERS BY END SECTOR 11
• 3.3.1 Retail Warehousing 12
• 3.4 WAREHOUSE AVAILABILITY 14
• 3.5 DEMAND & TAKE UP 15
• 3.6 RENTAL LEVELS 17
• 3.7 DISTRIBUTION OF FREIGHT 18
  • 3.7.1 Road Freight 19
  • 3.7.2 Rail Freight 19
  • 3.7.3 Ports & Waterways 20
  • 3.7.4 Air Freight 21
• 3.8 REGIONAL ANALYSIS OF THE WAREHOUSING SECTOR 22
  • 3.8.1 Greater London 23
  • 3.8.2 South East & East 24
  • 3.8.3 South West & Wales 24
  • 3.8.4 East & West Midlands 25
  • 3.8.5 North East & Scotland 25
• 3.9 OUTLOOK FOR THE WAREHOUSE SECTOR IN 2009 AND BEYOND 26

4. CONSTRUCTION MARKET FOR WAREHOUSES 28

• 4.1 CONSTRUCTION MARKET OVERVIEW 28
  • 4.1.1 Value of Total Output - Construction New Work 28
  • 4.1.2 Output in 2008 29
  • 4.1.3 Outlook for 2009 and Beyond 30
• 4.2 CONTRACTORS OUTPUT IN THE WAREHOUSING SECTOR 32
• 4.3 WAREHOUSING - NEW DEVELOPMENT PIPELINE 34
  • 4.3.1 Speculative Development 34
  • 4.3.2 Regional Pipeline 35

5. KEY ISSUES AFFECTING THE WAREHOUSE SECTOR 41

• 5.1 THE ECONOMY AND IMPACT OF THE ' CREDIT CRUNCH' 41
  • 5.1.1 Economic Indicators 41
  • 5.1.2 Manufacturing Output 41
  • 5.1.3 Consumer Spending and Inflation 43
• 5.2 LEGISLATIVE DRIVERS 45
  • 5.2.1 Energy Performance of Buildings Directive 45
  • 5.2.2 Empty Rates Relief 46
  • 5.2.3 EU Working Time Directive (WTD) 46
• 5.3 E COMMERCE AND WAREHOUSING 47

6. CONSTRUCTION MARKET SUPPLY IN THE WAREHOUSING SECTOR 50

• 6.1 STRUCTURE OF THE CONTRACTING INDUSTRY 50
  • 6.1.1 Consolidation in the Construction Industry - Impact of the ' Credit Crunch' 51
• 6.2 LEADING CONTRACTORS IN THE INDUSTRIAL & WAREHOUSING SECTORS 52
  • 6.2.1 Overview 52
• 6.3 KEY CONTRACTOR PROFILES 53

TABLES AND CHARTS

• CHART 1 WAREHOUSE COMPLETIONS BY TYPE (DESIGN & BUILD / SPECULATIVE - 2003-2008 (%) 6
• CHART 2 TAKE UP OF NEW WAREHOUSING BY SECTOR 2008 - FOOD, NON-FOOD, LOGISTICS, MANUFACTURING. 11
• CHART 3 RETAIL WAREHOUSE DEVELOPMENT PIPELINE (PROPOSED, PLANNING CONSENT 2002 - 2008 (MILLION SQ. M.) 12
• CHART 4 AVAILABLE WAREHOUSE FLOOR-SPACE IN THE UK AS AT JULY 2008 (M SQ. M.) 14
• TABLE 5 WAREHOUSE PROPERTY AVAILABILITY BY REGION AS AT JULY 2008 (MILLION SQ. M.) 15
• CHART 6 TAKE UP OF WAREHOUSE SPACE IN THE UK 2003 - 2008 (MILLION SQ. FT) 16
• TABLE 7 UK WAREHOUSE MARKET - RECENT MAJOR TAKE-UP TRANSACTIONS 17
• CHART 8 DOMESTIC FREIGHT TRANSPORT BY MODE 2008 (%) 18
• TABLE 9 UK WAREHOUSING MARKET - REGIONAL ANALYSIS - AVAILABILITY, SPACE TAKE-UP, SPACE UNDER CONSTRUCTION AND RENTAL VALUES 23
• CHART 10 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2013 (£ BILLION) 28
• CHART 11 NEW CONSTRUCTION WORK- OUTPUT Q2 2007 TO Q2 2008 - BY VALUE (£ BILLION AT CURRENT PRICES) 30
• TABLE 12 CONTRACTORS OUTPUT IN THE WAREHOUSING SECTOR 2002-2013 (£M) 32
• CHART 13 VALUE OF WAREHOUSING CONSTRUCTION OUTPUT 2002-2013 (£ BILLION) 33
• CHART 14 SPECULATIVE WAREHOUSE FLOOR-SPACE UNDER CONSTRUCTION 2005 - 2008 (SQ. M.) 34
• CHART 15 SPECULATIVE WAREHOUSE FLOOR-SPACE UNDER CONSTRUCTION BY REGION 2008 36
• TABLE 16 PRINCIPAL SPECULATIVE WAREHOUSE SCHEMES UNDER CONSTRUCTION BY REGION, SIZE, DEVELOPER, STATUS AND ESTIMATED COMPLETION DATE IN 2008 38
• CHART 17 MANUFACTURING OUTPUT - ALL INDUSTRIES SEPT 2007 SEPT 2008 (%) 42
• CHART 18 RETAIL & CONSUMER PRICE INDEX OCT 2007 - OCT 2008 (%) 44
• CHART 19 ONLINE RETAIL SPENDING IN THE UK 2002 - 2008 (£BILLION) 47
• TABLE 20 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2006 AND 2007 50
• TABLE 21 LEADING CONTRACTORS SHARE OF INDUSTRIAL & WAREHOUSING CONSTRUCTION WORK IN 2007 (£M) 53