Online shopping driving property investment demand

Online shopping driving property investment demand

A massive growth in online sales from major brands has led to a shift in the patterns of commercial property development.

Whereas in the 1980s and 1990s, shoppers were drawn to huge out-of-town centres, retailers are now using their flagship stores to advertise their products, with customers coming into the shop to look before buying online and having the product delivered to their homes.

In fact, online spending in the UK, as a percentage of total retail sales stood at 15% in 2016, up from just 3% in 2007 and business data company eMarketer predicting this will hit 23% of total sales by 2020, and this trend has led to a larger demand for warehousing, according to a leading global investment company.

This interesting shift in consumer behaviour may present huge opportunities for property investors, as a significant number of retailers look for quality buildings, near good transport links for ease of shipping goods.


The larger retailers often don’t own warehouses but rent them over long periods. This means property investors can benefit from a rise in the property’s value, while, according to one UK commercial property agent, attracting possible rental yields of up to 7%

At a recent industry conference, our commercial CEO Marc Goldberg took part in a debate on commercial property trends, and predicted that this increase in demand for warehousing is set to continue as more e-retailers follow the 24-hour model of distribution favoured by companies such as Amazon and Asos. During the discussion with other industry leaders, Marc also spoke of an expected increase in foreign investors in this sector, who are set to continue investing in warehousing and industrial property because of favourable conditions such as longer leases and the UK’s stable political climate.

According to the most recent RICS report, in some areas, the demand for industrial property space is significantly outstripping supply, so, with this in mind, warehouses could pose an exciting opportunity for investors as they adapt their property portfolios.

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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