I&L quality and location are more vital than ever

Demand for big-box warehouses sits comfortably above pre-pandemic norms, largely driven by the expansion of ecommerce.

At Panattoni, over the past 12 months we have leased 3m sq ft. Enquiries have picked up and requirements are increasingly long term, with companies planning distribution networks that can scale up quickly as businesses grow. Many occupiers are no longer willing to wait years for new facilities, but want buildings either ready to move into or that can be delivered fast in build-to-suit projects.

For the right stock in the right location, demand is resilient regardless of economic uncertainty, with sites close to major infrastructure continuing to perform particularly well.

Companies are also investing in automation and robotics to increase efficiency and manage rising volumes. This brings more technical demands, from highly specified floor slabs to increased power capacity that can support advanced equipment.

Developers are ensuring warehouses are built to a standard that can support such systems from day one.

Occupiers are also paying more attention to sustainability, for practical reasons as much as environmental ones. Solar panels, energy-efficient cladding systems allowing temperature control, water recycling and other measures can cut operating costs and help businesses meet reporting obligations.

These trends point to a logistics market where quality, speed of delivery and strategic location matter more than ever.

James Watson, head of development, southern England and London, Panattoni UK