Automation will replace human beings. Production and logistics are moving back to the target market
- logistics properties
WHAT ARE THE CONSEQUENCES IN TERMS OF INVESTMENT IN PROPERTY FOR LOGISTICS, PRODUCTION AND BUSINESS?
Location, location, location – some things simply never change. There will be an increasing demand for production and logistics facilities at strategically sound sites. Locations in and around metropolitan regions will be in particular demand due to their proximity to the end customer and the availability of labour. But sites near established industry clusters are gaining in importance, too, since OEMs and suppliers are becoming increasingly dovetailed in terms of production and development, and geographical proximity enhances reliability and speed.
Can there be such thing as a universal industrial building for production and logistics?
If security of investment is to be the aim in a dynamic environment, buildings have to be versatile in terms of usage in order to be able to address as wide a group of potential tenants as possible. This is something for which we have a project development team to deal with, but the breadth of a building’s potential uses is also an issue at the purchase stage. But is there a smallest common design denominator for production and logistics? Yes, to a certain extent: wherever small and medium-sized logistics projects are concerned, or in the case of production facilities of manageable complexity without extreme requirements.
Developing the smallest common denominator
Garbe Industrial Real Estate is developing its own specification for this “universal building” on an ongoing basis. The aim is for both newly constructed buildings and existing properties to meet as many as possible of the wide-ranging conditions that have been filtered out from diverse customer requirements and set out in a criteria catalogue. Close familiarity with tenant sectors increases security of investment All in all, this is what counts.
We believe that it is precisely because there is so much pressure of change on tenants and their requirements within the markets for business and logistics property that these markets offer especially attractive investment opportunities. And this applies in particular to those who are permanently dealing with such markets in detail – designing fund products, purchasing and managing funds on an ongoing basis. But above all on the tenant side: sustainable returns are established in the development of a property and secured in the long term through asset management.