Strettons Sees Artisan Sector Feature Strongly in Industrial & Logistics Agency Trends
The Covid-19 pandemic has resulted in huge changes to our lifestyles, habits, how we shop and what we buy.
Over the past 16 months, since early April 2020, trends in the property market have reflected this shift in consumer activity since the onset of Covid-19 lockdowns, and whilst there has been an unfortunate negative impact for some sectors, the industrial and logistics sector has seen a surge in activity. The shift to online sales and last-mile deliveries has been commented on many times but other industrial and production areas have thrived, albeit after an uncertain early few months.
The strong occupier demand has been particularly apparent in Strettons’ core geographic areas of east and north London, and has come from a range of businesses, most notably the creative, film and artisan food sectors. It is now the case that, after a year of unprecedented high occupier demand, production and warehouse spaces are in short supply.
Trends and Deals Done
On the evidence of our 71 deals undertaken, Strettons is finding that food and beverage companies are amongst the most active tenant groups for industrial properties and warehouses in London. We have seen an upturn in activity from creative/artisan applicants from the following categories:
- Brewers, coffee roasters, soft drink manufacturers and food suppliers
- Joiners and manufacturers
- Photographers and recording studio operators
- Dark kitchens and delivery only restaurants
Several significant lettings Strettons has transacted on over recent months illustrate the steep growth of these sectors.
Taking Walthamstow as an example, The Greater Good Brewing Company Limited initially took space totalling 7,736 sq ft in two units at Uplands E17, a location in the heart of the town centre. Finding the up and coming business park and its artisan community eminently suitable for their growing business, in just over a year, the company has completed on another two units totalling 13,204 sq ft, bringing their growth in a year up by 170%.
Hackney Gelato, creators of bespoke and off-the-shelf gelato and sorbetto, has also chosen Uplands E17 as a suitable home for its expanding business. Formerly located in a 1,600 sq ft unit in Regent Studios, the firm has now moved into a unit totalling 7,128 sq ft, a growth of 445%.
Allplants, a business focused on delivering tasty plant-based meals to homes, was originally located in a circa 3,000 sq ft unit in Tottenham. They are now located in an impressive 19,730 sq ft space in Uplands E17, a growth of 657%.
We have seen significant interest in Walthamstow, Leyton and the surrounding areas for industrial and logistic premises. The area had benefitted from being appointed the official London Borough of Culture in 2019 and has developed a strong reputation as a place where independent businesses can thrive. Leyton Industrial Village and Uplands E17 are homes to many creative companies who have started their journey there or chosen the site for their expansion.
The Old Truman Brewery E1, now heralded as east London’s arts and media quarter, is home to over 700 independent shops, galleries, markets and restaurants. With the regeneration of the site creating an eclectic mix of business and leisure, the area continues to attract entrepreneurs and artisans.
Hackney Brewery, founded in 2011 in railway arches in Hackney, is marking its 10th anniversary with a move to a new 7,500 sq ft brewery and taproom in Walthamstow. The new premises on Blackhorse Road will be called ‘High Hill’ and is expected to launch in June 2021.
Micro-breweries, both production and taprooms, especially have seen a steady rise in recent years. There are now whole areas dedicated to them such as the Blackhorse Beer Mile, Leytonstone Beer Mile and the Bermondsey Beer Mile.
After a year of huge demand for production and distribution facilities, warehouses are now scarce in east London. Whether this will translate into higher rents remains to be seen. However, developers are catching up and have acknowledged this gap for industrial space and there are now 8 industrial sites under construction within the M25 totalling 1.12 million sq ft.
If you have any property you would like to let out or are an applicant looking for industrial space, please get in touch with the team at email@example.com or contact Ross or Charlie.