Britain faces a significant increase in required warehouse space, with Savills estimating an additional three million sq m needed by 2032 primarily due to rising defence spending. This follows a pledge to increase the defence budget by approximately £40 billion by 2035, necessitating more production and storage capacity from key contractors like BAE Systems and Rolls-Royce. To meet this demand, about 429,000 sq m of new storage capacity must be built annually on top of the normal output, all while warehouse rents are under pressure from increasing demand.
"Savills estimates that an extra three million sq m of warehouse space - the equivalent of more than 400 football pitches - will be required by 2032 as the government's defence spending commitments feed through to manufacturers."
"Much of this new spending is expected to flow to Britain's largest defence contractors, including BAE Systems and Rolls-Royce, who will need additional production and storage capacity to fulfil orders both at home and from allies across Europe."
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