London South has one of the highest population densities in the country, and therefore has a vast catchment of consumers and businesses, as well as good connections to several motorways, and Gatwick Airport. London South does however also have the smallest volume of warehouse stock out of all the regions, and despite significant demand, a history of very limited supply.
Amazon’s re-purposing of a former Toys R Us unit in Croydon to a logistics unit was one of the few occupier deals recorded in 2020. The fact that this occupier had to repurpose former retail space is reflective of the chronic supply shortage in London South, with very little available space on the market. Looking forward, there are schemes either underway or in the planning process which could deliver some much-needed new stock over the next few years. These include Prologis Park Beddington and Valor’s scheme in Mitcham as well as St Modwen Park Gatwick and GLP’s 8-acre sire at Manor Royal, Crawley. These schemes will be welcomed by occupiers and the region’s rental profile will be dictated by when schemes are delivered.