London’s Hottest Properties Are Urban Warehouses

Demand for industrial space from online retailers like Amazon is luring some of the world’s biggest investors

Burlington Arcade

Photographer: Simon Dawson/Bloomberg
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Nevermind West End shopfronts and Mayfair offices. The big money in London real estate is chasing small warehouses.

Rents for the dwindling amount of industrial space inside cities are soaring as online retailers like Amazon.com Inc. seek local hubs to cut delivery times. That, in turn, is luring some of the world’s largest investors, from Blackstone Group LP to Singapore’s GIC Pte.