Supply chain evolution ongoing – with technological adoption, ESG, and power availability at the forefront
Many occupiers are looking to adopt new technologies at both a building (40%) and corporate (38%) level. With labour challenges (cost and availability) both prominent, the potential to integrate AI-based tools with automated processes is seen as an appealing solution.
In addition, when asked which technologies and themes will be most important in terms of impact over the next five years, the top four responses centred around decarbonising/greener transportation: electric vehicles, more efficient diesel vehicles, decarbonising supply chains and adopting other fuel types.
Ongoing fleet evolution and the rising adoption of power-intensive technologies like automation and AI all combine to increase power requirements. Occupiers are acutely aware of this. Indeed, power availability has climbed the agenda, with 36% citing this as a barrier to securing future space, compared to 11% in 2023 and 7% in 2022.
Occupiers continue to evolve their logistics real estate networks as they manage significant changes in their supply chain, underpinning demand for high-quality, modern and well-located logistics buildings
Andrew Blennerhassett, UK & EMEA Logistics Research Analyst, Commercial Research
The ESG impacts of this remain important. Carbon performance and renewable energy (onsite generation and storage) were ranked as the #1 and #2 most important ESG measures by 60% and 55%, respectively. Occupiers want tangible and measurable ESG initiatives: building environmental classifications scored lower, suggesting a priority shift towards securing detailed, data-led building performance over certification/compliance.
This ongoing supply chain evolution is taking place within an uncertain global trading environment, and our survey suggests that companies are planning accordingly. 25% of occupiers expect to hold more stock over the next three years. Meanwhile, 15% plan to shorten their supply chains via re/nearshoring. This rises to 20% for manufacturing and retail occupiers (a significant proportion given the associated costs and challenges), with a similar number of these planning to diversify supply chain routes and supplier bases.
Occupiers continue to evolve their logistics real estate networks as they manage significant changes in their supply chain, underpinning demand for high-quality, modern and well-located logistics buildings.
Read the articles within Future Space Report 2025 report below
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