Occupiers and investors have called time on mega sheds as deliveries and small-scale operations drive a shift to smaller industrial units.
Planning permissions for sheds of more than 500,000 sq ft have fallen by 48% in the 12 months to the end of May, according to EGi’s Industrial Research. Investment has dropped by a quarter. Investment in all other shed sizes has increased – by as much as 42% for medium sheds.
Take-up dropped to 11m sq ft over the past year, with availability for mega sheds now standing at just under seven years – four years more than for small sheds, where investment has risen 39%.
The industrial heartlands of the East and West Midlands have taken some of the largest hits, with money spent on large units falling by 29% and 12% respectively, although Wales and the East of England saw the biggest drop in investment levels.
Shed classifications (sq ft)
Small 0-20,000
Classic 20,000-45,000
Medium 45,000-100,000
Large 100,000-500,000
Mega 500,000+
