Amazon continues UK property blitzkrieg as it is set to sign record number of leases this year

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Amazon is set to sign leases on a record number of warehouses across the UK this year, already accounting for nearly a fifth of all deals.

According to new data from Savills, reported by Property Week, Amazon has signed 18 warehouse letting deals so far this year, almost the same as it made during the whole of 2020.

This accounted for 17 per cent of the 106 total letting deals signed so far this year as the ecommerce retailer continues to dominate the increasingly competitive industrial warehouse market.

Despite doubling its already record-breaking uptake last year, Amazon has actually signed up for significantly less square footage suggesting it is favouring smaller warehouses.

READ MORE: Amazon hunts for 40 new UK distribution hubs as it struggles to maintain rapid delivery

Savills’ head of industrial Kevin Mofid said this could be a signal that Amazon is “trying to take a lot of its supply chain in-house – and that’s borne out by the stats really.”

The ecommerce giant is expected to continue its UK property blitzkrieg throughout the rest of 2021, having already made offers on Debenhams former 737,000sq ft distribution centre in Peterborough alongside its two warehouses in Lutterworth.

Late last year, Amazon announced it was is seeking to rent, rather than buy, 40 new UK locations outside of London and the South East where it already has a significant presence.

One industrial property agent told Property Week: “Amazon is currently at the forefront of most requirements,”

“If you’ve got space, the chances are it’ll be Amazon. They are taking huge amounts.”

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