Jonathan Powling talks to EG on how to unlock industrial space urged in wake of critical shortage

Exempting speculatively built warehouses from business rates until they have tenants could be one solution to the critical industrial space shortage, according to law firm Addleshaw Goddard.

Powling talks EG through Addleshaw Goddard's new major 90-page ‘How Soon is Now?’ report on the evolution of logistics and its impact on industrial property. The report, produced with contributions from listed investors, developers and occupiers such as Tritax, Verdion, DP World and L&G, makes a series of 12 policy recommendations to unlock space for industrial use.

 Porposals include:

• Exempting spec sheds from rates until occupation, encouraging councils to designate land for industrial use, and grant funding for brownfield development among suggestions
• Action needed due to “critical” lack of stock to hold online and retail deliveries – just 26.4m sq ft of space
• 18m sq ft of space needed annually to meet projected 20% UK online retail demand – only 3.8m sq ft of space set to be built this year
• No action could see costs passed on to consumers