Introduction to Future Gazing 2024

Industrial and logistics properties and the activities that take place within them are largely removed from daily modern life.
Written By:
Charles Binks, Knight Frank
2 minutes to read

Yet many, if not most, of the goods and services we rely upon are made, processed or stored within industrial and logistics properties. The daily demands of modern lives could not be met without industrial and logistics properties and the activities that take place within them.

The Covid-19 pandemic served to shine a spotlight on the industrial and logistics sector. It highlighted the vital role that industrial and logistics facilities play as part of the nation’s critical national infrastructure. They are a crucial part of supply chains – both for critical and discretionary items – and support the health and well-being of the population along with the growth of consumption and the broader economy.

Household projections, demographics, and the population’s needs regarding amenities and service provisions (such as shops, pharmacies, healthcare, and schools) are typically considered as part of local development plans when assessing housing and employment provisions. However, the specific functions that take place within industrial and logistics properties and their importance in providing the goods and services needed by households and businesses are often overlooked.

A diverse business ecosystem exists within our industrial and logistics properties. How these businesses connect to our modern lives and our economic prosperity needs exploration so that we can better anticipate and plan for future demand and support economic growth.

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Although vacancy rates have risen over the last year, occupiers of industrial and logistics properties frequently cite a lack of available, suitable premises as a barrier to business expansion.

Local development plans frequently prioritise the needs of other sectors without understanding the supporting role played by industrial and logistics property. And despite a critical need for logistics and distribution infrastructure specifically, local planners often promote other, alternative uses of industrial land.

While logistics operators frequently think of catchment areas in terms of the number of residential properties they can reach from a particular logistics facility, this relationship needs to be considered in reverse. What are the needs of the household in terms of logistics and the wider industrial property sector?