"Savills is constantly reviewing which business sectors could be set to expand. A current feature of the Greater London and South East office market is the variety of businesses which are actively taking space. "

"Defence supply chains across the UK and Europe are complex, spanning major contractors, specialist component suppliers, and emerging tech firms. In this section, PA explores the complexity of the scaling and productivity challenges that such supply chains face"

"Looking ahead, if we assume that employment keeps pace with the increase in expenditure, we can calculate estimated employment growth based on the increase in defence spending as a percentage of GDP"

"Employment growth is set to drive significant expansions in industrial and logistics demand"

"With the SDR representing the largest sustained increase in defence spending since the Cold War, Savills has been considering the implications for the industrial and logistics sector. In the following sections, Savills seeks to build on the insights from PA and quantify the impact"

"The MOD spent £52.8 billion and £54.2 billion on defence in 2022/23 and 2023/24, respectively. Of that, close to £30 billion was on the procurement of equipment and services"

"Already employing close to one million people across the continent, Europe’s rearmament could stimulate significant demand for industrial and logistics space"

"The scale and ambition of the SDR should not be called into question; like much of the Western world, the UK has reacted to an increasingly conflict-prone international order. As experts in logistics real estate, we would note several key policy implications that the government will need to address as part of the SDR’s implementation"

"Real estate can play a crucial role in addressing defence supply chain scaling challenges. In this section, PA discusses the necessary infrastructure to support increases in production capacity alongside investment in critical functions such as research and development"