UK online retailers facing increasing rental charges following warehouse shortage

Online retailers in the UK may soon be faced with up to a 10 percent increase in rental price and delivery issues due to a shortage of warehousing supply.

UK e-tailers, ranging from Amazon and Asos to Very.co.uk use warehouses across the country but other companies who are seeking to expand should plan ahead and property developrs should seek to build more, according to a new report.

The report, published by Colliers International, UMC Architects, Kam Project Consultants and Total Logistics, states that there is less than a 10 month supply of warehouses that total over 100,000 square feet. The shortfall in some areas, including the South East, may see rents increasing between 5 and 10 percent by the end of 2016. Steven Mitchell, Colliers International industrial and logistics director, warned that delivery times may also lengthen unless the space shortage is addressed as soon as possible.