"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"

"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"

"Given the potential flow of demand over the next decade, which regions can expect to see a rise in take-up? Like many manufacturing industries, the defence sector benefits from significant agglomeration economies. To examine this, we can look at breakdowns of employment by region"

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

"Sam Quellyn Roberts, Director of EMEA Industrial & Logistics – Occupier Markets, discusses the complex needs of modern defence occupiers and the difficulty in fulfilling these requirements"

"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"

"The impact of rising defence spending will have far-reaching consequences on UK and European property markets"