The industrial and logistics sector continues to be the shining star of the property market. Demand is increasing unabated and rents and asset values keep going up, up and up.
One of the key issues is land shortages, particularly in town and city centres, where retailers and logistics companies need space to service last-mile delivery. In the latest of our Sheds of the Future series, in collaboration with Savills, we task six architects with designing an ultra-urban logistics hub and residential hybrid. Their concepts are weird and wonderful and provide plenty of food for thought.
As well as the potential for ‘sheds and beds’, another evolution, driven by the growing use of automation, could be warehouses being measured in three dimensions, not two – a debate that was reignited by Amazon in November. This would lead to fundamental changes in the way buildings are valued – changes not necessarily welcomed by landlords even if it would equate to higher rents.
Another possibly worrying change, in London at least, is a policy being considered by the GLA that would force developers to let a percentage of their schemes at low rents to accommodate small businesses that are being priced out of the market. Finding a balance where the GLA, small businesses and developers are all happy will be tricky to say the least.
Gain insights into all these issues and more in this first Industrial & Logistics supplement of 2019. It’s going to be an interesting year.
Mia Hunt is Property Week’s market reports editor
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