In 2021, global warehousing investment reached $2.19 trillion, a rise of 35.7% from 2020. This comes in the face of the massive shortage of commercial warehouses and industrial space experienced during the outbreak of the Covid-19 pandemic, which fuelled unprecedented growth in online shopping.According to the latest warehousing report by Transport Intelligence (Ti), a leading provider of logistics and supply chain market research, the e-commerce sector is showing few signs of abating and the outlook for the warehousing sector is extremely bullish.Ti states that warehousing space has become some of the most competitive real estate in the world, with national vacancy rates at historic lows and sales of available industrial warehouses sky-high. “The warehousing shortage is predominantly due to the global supply chain crisis of the past two years, which has inadvertently caused warehousing bottlenecks. With consumers increasingly adopting e-commerce as a routine way of shopping – which, in turn, requires more warehousing space – warehousing demand has rocketed,” reads the report. “Furthermore, with many shipping ports at full capacity, the stream of incoming freight for nearby warehouses is consistent, leaving little time to clear out space before new shipments arrive.”Research at the end of 2021 showed there were 158 000 warehouses in existence globally – a number that is expected to exceed 180 000 by the end of 2025 as new facilities are brought into service to meet increasing consumer demand.According to Kevin Hutton, general manager of Beira Logistics Terminals (BLT), the warehousing sector in southern Africa is experiencing much of the same positivity at present. “The warehousing sector is in one of the best positions since the outbreak of Covid-19. Space is at a premium and the outlook is very positive. We don’t believe there will be any change over the next 12 to 24 months at least.”Ravi Naicker of South Africa Cargo Services agrees, saying growth in the sector is expected going forward. “We are seeing companies opening up new facilities, or in some cases, even opting for joint ventures with other companies in the region. The reasons for the latter option are to reduce costs for customers and ensure customer retention.”Several new projects are on the cards. In the Western Cape, ground is expected to be broken in October on a new distribution centre for Truworths at the King Air Industria Cape Town site. The 53 000m2development includes a 50 000m2warehouse and the option to expand to 70 000m2.According to industrial developer Atterbury Group, South Africa is experiencing a relative boom in new warehousing space demand, notwithstanding the macro challenges the country is facing. It says logistics, warehousing and light industrial property are going through a particularly exciting time right now, especially as all kinds of retailers continue to gear up their distribution networks by driving new omnichannel strategies.The company also recently signed a deal with Takealot for a 20 400m2second phase of its Richmond Park distribution facility, which will take the facility’s total size to 44 000m2when it is completed in June 2023.
