This was prompted by a record low supply of 18.1 million ft2 (down 34% year-on-year) triggered by a new record take-up of 50.7 million ft2 and a record annual share of online sales of 29.1% in 2021, up from a share of 28.1% year-on-year (ONS).

The key driver of demand is the strong appetite from online pure player companies which took a record share of take-up of 43% compared to 33% in 2020, while general retail recorded an 11% share, down from 18% year-on-year.

Furthermore, Amazon accounted for 28.3% of total take-up, up from 25% in 2020. Circa 14% of total space was also acquired by other online brands such as, Boohoo, and Buy It Direct to name a few.

Len Rosso, Head of Industrial and Logistics at Colliers said:  “In terms of the prime end of the market, the average rental growth was also considerable. For this type of accommodation in London, it recorded 25% and in the regions, they witnessed around 11-16% average growth.