The keys to success for new logistics buildings

Montepino is analysing the characteristics of logistics platforms to offer an excellent service to their operators, while establishing a Top 5 of the most fundamental factors to adapt their assets to current needs and demands.

Zaragoza, 23rd March 2021

Lately, changing consumption habits have led to the reinvention of many sectors. One of these sectors, the logistics sector, is going through a revolution due to the huge increase in e-commerce and the commitment it has made to sustainability.

Montepino Logística, one of the largest logistics developers and asset managers in Spain, has therefore established a list of the Top 5 factors that guarantee success for new logistics buildings by analysing operators' current needs and demands.

DIGITALISATION: Technology has allowed us to develop new types of buildings which would not have been possible before. The implementation of technology in the logistics sector is enabling Big Box installations to be managed more efficiently, more sustainably and more lucratively. Nowadays, 100% of workers in modern logistics assets use digital devices and perform their daily activity thanks to technology.

ADAPTATION: To function well on the market, logistics developers must adapt buildings to productive processes, rather than the other way around. Variable geometry must be implemented, to know how to adapt to tenants' demands. In fact, the largest operators are now improving their margins because their buildings allow them to easily change their productive processes. One of the keys to this is accepting that there is no longer a benchmark income for logistics assets, even within the same industrial estate, because the characteristics and specifications for each building are radically different. There is no standard model, no established blueprint, no platform the same as another.

FLEXIBILITY: Given that operators' activity is completely flexible, it is important to design buildings that are fully adaptable. Logistics developers must therefore build assets with large areas for picking, co-packing and preparing orders, with mezzanine floors on up to 100% of surfaces. Warehouses full of shelves are a thing of the past. This flexibility is achieved by increasing the distance between pillars and removing as many as possible, removing gutters, removing partitions... in other words, removing fixed points that tie operators down and enabling the platform to be flexible should they choose to change activity.

OCCUPATION RATIO: One of the most fundamental aspects for logistics buildings to be successful is the occupation ratio. Nowadays, it's essential not to build upon the entire plot of land and to work with occupation ratios under 50%. The extra space around the building is exactly what gives activity breathing space and allows it to adapt to different circumstances. It has been proven that old industrial estates, with occupation ratios closer to 70% of the land, are obsolete and do not provide enough space for workers.

LOCATION: Although defining a market by its regions may be outdated, locating assets based on the purpose of their activity is another key to success. Platforms located in the centre of the Iberian Peninsula – Corredor del Henares, Illescas, etc – are able to perform their activity near the capital and within the main communications junction in Spain, but far enough away to avoid the traffic jams around Madrid. Moreover, these logistics industrial estates have a very strong workforce, for whom it is economically beneficial to live outside the capital.

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