A qualitative difference

This, according to John Palmer of Savills, could happen in as soon as five years’ time. And despite the surge in supply, the future still looks bright in terms of demand. As much as 60 pct of the space currently under construction is already pre-leased. But for anyone reading this publication it may also be striking that it’s not the huge quantity but the quality of warehouse development that developers are mostly keen to talk about. That this is the focus of the articles featuring Prologis, Segro, MLP and 7R shouldn’t be surprising, since it is quality that will probably become the deciding factor in the battle for future tenants. A perfect example of the change in approach developers are embracing is the establishment of Prologis Lab, a new logistics related innovation centre in San Leonardo, California, where Prologis and its tenants are now testing out the latest warehousing tech. Reducing costs, coping with the labour shortages and increasing the sustainability of industrial projects through innovation are not just the main topics of this supplement, but are likely to be the dominant themes in the warehouse business for years to come.