Money managers are flocking to a new spot in the U.K. real estate market.
Traditional office spaces are losing their attractiveness to investors, but the appetite for industrials and logistics spaces is on the rise.
Industrials and logistics are offering the highest returns "due to the shift from physical stores to online shopping, as retailers are looking for more space," James Carswell, analyst at the stock broker Peel Hunt, told CNBC on the phone Monday. "There are more people buying online and there's a growing need for quicker delivery times."
The rise of Amazon, eBay and other online shopping services like Ocado is creating the need for large warehouses and storage units. Alongside growing customer demand to receive purchased items as quickly as possible, this is requiring an increasing number of storage spaces – both big boxes in the countryside and smaller units closer to biggest cities, mainly London.