Any meaningful discussion around the future of industrial and logistics real estate cannot be divorced from how consumer preferences are evolving. Real estate observers typically track standard metrics of rents, occupancy rates and prices of industrial properties but it is useful to dive deeper into the rapid changes in how goods are being manufactured, stored and delivered.
A thorough understanding of these trends will shape the future of industrial real estate. More importantly, it will address the longer-term issue of maintaining demand for industrial and logistics facilities.
Pharma giant GSK recently announced the setting up of its new S$130m manufacturing facility at Pioneer. The plant is powered to enable continuous manufacturing in small quantities of a wide range of varied drugs. This type of “high mix, low volume” manufacturing is a response to consumers’ preference for goods that are bespoke and custom-made for their individual tastes and needs.