Additional 11.6 million sqm of warehouse demand to hit Europe in 2022

An additional 11.6 million sqm of warehouse demand is expected to hit Europe by the end of 2022, driven primarily by the manufacturing sector, according to Savills. Take-up in the European manufacturing sector has grown significantly over recent years, rising from 2 million sqm in 2012 to 4 million sqm in 2019. Even though take-up is expected to be slightly lower in 2020, it is forecasted to surpass 4 million sqm in 2021 and continue to increase in the coming years. Over the past five years, the UK has attracted GBP 148bn in private manufacturing investments, creating demand for 2.4 million sqm of warehouse space. This indicates that for every GBP 1bn in private manufacturing investments, there will be new demand for 175,000 sq ft of warehouse space, according to Savills.