The Future of Industrial Real Estate

Advancements in technology are disrupting the function and design of industrial real estate. Since these advancements are believed to be exponential, perhaps to an extent, the industrial real estate of tomorrow promises to be very different than today. Technologies such as autonomous vehicles, 3D printing, robotics, and the internet of things (IoT) exist and will disrupt industrial real estate and supply chain. However, with exponential advancements in technology disruption the future of industrial real estate is very likely to be disrupted by new technological silos which do not exist today.

The most disruptive existing technology to impact industrial real estate in the next five to fifteen years will be autonomous trucks, beginning with autonomous platooning and ending with fully automated tractor-trailers. Site selection will change with autonomous trucks. So will the design of industrial facilities.

Perhaps the most disruptive quality of autonomous trucks will be their interaction with other technologies such as robotics and 3D printing. Autonomous trucks can be sent on milk runs to deliver packages using drones and robots to a multiple customers at the same time. They may also encourage automation in the distribution center by connecting to an internet of things (IoT) within the warehouse, which will coordinate the unloading and loading of the trailers and material handling in the warehouse by robotics. Autonomous trucks may also team with 3D printing to manufacture parts while on the road to the destination.

While the impact of existing technologies on the supply chain and industrial real estate is not fully known, the most impact will most likely come from how these technologies can interact and work together.

Supply Chain Real Estate News

Pennant Moldings, Inc. will invest $8.6M to establish a 60,000 SF operations center in Lebanon, TN…

HarbisonWalker International is constructing a $30M monolithic refractory facility in South Point, Ohio…

Amazon plans a to open a 855,000 SF fulfillment center in Troutdale, Oregon…

German grocery store chain Aldi announced a 900 store, $5B expansion in the U.S.

DHL is expanding their locations in India due to an expected boom in e-commerce there…

Apparel retailer Bebe sold its distribution center to prevent a bankruptcy filing..

A Chinese tire manufacturer named Wanli Tire Group is planning on investing $1B in a new South Carolina manufacturing plant…

Industrial real estate development at a 10 year high…

Mueller Industries will build a new 55,000 square foot U.S. headquarters in Memphis…

Report states that driverless trucks will eliminate millions of jobs…

Amazon’s robots mean more human workers in Houston, not less…

China’s CIC is close to a $13.49B deal to purchase European warehouse owner Logicor…

Lease accountancy changes may require more work than companies have previously thought…

Cushman & Wakefield brokers $76.1M sale in Pennsylvania…

Robinson Weeks Properties builds a new 1M SF speculative distribution center in Atlanta…

Tennessee Tool and Fixture, ironically based in Canada, will locate its first US operations in Manchester, Tennessee…

UPS will build a 980,000 square foot $180M packaging hub in Phoenix…

Another meal delivery service fails as Sprig Inc. closes its doors…

 

Published by

Chuck Berger

I am Director with Cushman & Wakefield's Global Supply Chain Solutions (CA Broker License #01359232). My passion is solving real estate problems for supply chain companies and investors.

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