Industrial - logistics and manufacturing

Logistics and manufacturing have been through a sustained period of change, and pressure – with the pandemic and Brexit having substantial impacts on strategy across the sector. The world of logistics and warehousing (also known as ‘big box’) development and operations has seen businesses rush to construct new facilities in light of the impact of both the coronavirus pandemic and Brexit. There has been an ongoing battle between increased demand and short supply, leading to soaring prices at prime locations.

At the same time, manufacturers and industrial occupiers have had to re-evaluate their business models, and their need for and use of space as part of their operation (including those businesses operating on a ‘just in time’ basis, or with international shipping requirements).

At the same time ESG and sustainability are featuring more prominently in the minds of occupiers (and therefore investors) when it comes to new developments – with environmental performance ratings, provision for electrical vehicles, and other future proofing of properties being at the forefront of people’s minds.

These trends are likely to continue to drive the industrial market over the next few years as we continue to adapt to the new international trade position, and in a post-pandemic world:

  • Investors will be looking for ways that they can keep up with (and anticipate) the needs of their occupiers.
  • Modular construction may be considered as a way to develop new space sustainability and efficiently.
  • Occupiers will be looking at efficient use of space within their property portfolios, which may see re-purposing of assets within their businesses.
  • Last-mile logistics will take on greater prominence as our reliance on home deliveries looks unlikely to reduce substantially.
  • As shop brands disappear from the high street, having been purchased by online retailers, logistics demand will only increase.  

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  • Graham Collier

    Principal Associate

    Graham Collier

    Principal Associate

    • +(44)(0)16234 8705
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