Trends in Industrial Real Estate: Warehousing, Logistics and Growth

The commercial real estate market continues to grow and evolve at a rapid clip, staying in step with the fast-paced global economy, introducing trends that are reshaping the landscape. Companies are now planning for the future to leverage such emerging features like flexible warehousing solutions and advanced manufacturing hubs.

Top trends in industrial commercial real estate

• • Rise of e-commerce and demand for warehousing: The surge in growth of e-commerce has been propelling demand for warehouse space on lease to cater to the soaring demand for swift and efficient delivery of a diverse basket of products. With very little warehousing space available at the moment, there has been feverish activity towards creating more warehouse space through a plethora of new constructions, focusing on innovative layouts to optimise space. Modern warehouses feature cutting-edge technology like automation and robotics, to streamline operations and boost productivity.

 

• • Bringing manufacturing back home: The frequent disruptions in global supply chain management in recent years has powered the trend of “reshoring” or bringing manufacturing back to home soil. This in turn has triggered a spike in demand for manufacturing real estate, more so where infrastructure is reliable and a skilled workforce is available. Investing in manufacturing real estate enables businesses to cut risks in supply chain management, thus ensuring production doesn’t slow down.

 

• • Sustainability in industrial design: As sustainability becomes the buzzword around the world, industrial real estate is also pivoting towards a more environmentally responsible design and operations template everywhere, India being no exception. Hence, it is becoming more and more important to invest in environment-friendly buildings, energy-efficient facilities and construction protocols that least hurt the environment. The tenants are also demanding ‘green’ or environment-friendly buildings to sync with their onus of corporate social responsibility.

 

• • Adaptive reuse of industrial spaces: Another standout and important trend that is emerging in industrial real estate today is the adaptive reuse of pre-existing industrial facilities lying idle. Factory premises, old warehouses and other industrial structures which have been abandoned are being morphed into buildings to serve a clutch of purposes, including residential spaces, creative offices, retail and mixed-use developments. This concept of adaptive reuse helps rejuvenate decaying quarters, while enhancing the value of existing structures.

 

• • Tech-driven facilities: Today’s warehouses and manufacturing facilities are all driven by smart-tech features like Internet of Things (IoT), AI-driven inventory system and latest security measures. Companies have realised that investing in such smart-tech solutions in industrial commercial real estate can result in significant savings and enhanced operational performance. In this rapidly-changing business climate, large enterprises need data-driven insights and superior connectivity to stay relevant and retain the competitive edge.

 

• • Global trade and FDI: The industrial real estate sector is inextricably linked to the potential of direct investment from abroad and international commerce. In areas which are more preferred for international trade, there is a surge in demand for industrial real estate. With growing globalisation of supply chains and the need for more strategic locations, the market for industrial property is receiving a shot in the arm by way of cross-border investments.