The Future of Food Chains

CUSHMAN & WAKEFIELD

Occupational demand from food related operators has favoured the South East & East, which has accounted for 26% of food take-up since 2008. This preference is a result of its close proximity to London, and its connectivity to seaports such as London Gateway and Felixstowe which are responsible for handling large quantities of produce imported from mainland Europe.

In addition to a preference for locations connected to critical sea ports, and urban conurbations, we have further identified that a 37% of this footprint is located in units of 500,000 sq ft and above, which is largely attributable to the existing supply chain model that utilises regional and national distribution centres in handling and moving food goods.

Since 2008, the food chain has accounted for 76 million sq ft of prime industrial and logistics space (in units over 50,000 sq ft), averaging 5 million sq ft per annum.

This is just a portion of the market, with many units held in freehold or in long term occupation. Since 2007, the average lease term signed has been 14.5 years, with a number of 30+ year leases also signed in that time.

During 2022 alone, the sector accounted for 5 million sq ft. To put that figure into perspective, this is similar to the levels driven by e-commerce operators.

TOTAL FOOD TAKE-UP BY REGION (2008 ONWARDS)

TOTAL FLOORSPACE BY UNIT SIZE (2008 ONWARDS)

25

25

20

20

15

15

10

10

MILLION SQ FT

MILLION SQ FT

5

5

0

0

50-100K

100-150K

150-200K

200-250K

250-300K

300-400K

400-500K

500-600K

600K+

YORKS & HUMBERSIDE LONDON

SOUTH WEST

SCOTLAND

WALES

NORTH EAST

SOUTH EAST & EAST

NORTH WEST

EAST MIDLANDS

WEST MIDLANDS

Source: Cushman & Wakef ield

Source: Cushman & Wakef ield

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FUTURE OF FOOD CHAIN |