Occupiers adapting to modern industrial life

Posted by Knight Frank Newcastle on 23rd October 2019 -

The office sector has readily adapted to staff requirements, but what is the future for the industrial market?

Industrial and distribution units are often developed in out of town locations along the motorway corridors, separated from general amenities. However occupiers have started to respond to this as warehousing facilities can now be called on to cater for a much broader make up of staff.

It is now widely accepted that B8 occupiers provide a significant number of job opportunities, delivering a greater number of staff positions and types. As well as warehouse floor operatives, they include IT, sales, customer service, finance and marketing, across a range of levels.

Office-based employees usually have easy access to city centre amenities or business park services, but typically, the industrial sector is located at out-of-town sites where staff are often confined on-site or to an industrial estate environment, with few or no amenities when taking a break.

The industrial sector has been slower to take the idea of modern staff amenities on board, but as the work/life balance becomes more important in all businesses for employee well-being, and even recruitment and staff retention, it is beginning to change and occupiers are becoming more aware of adapting to staff needs and creating a better environment for employees to work.

Traditional construction of industrial units haven't always lent themselves well to catering for break out areas or additional space for leisure or relaxation, with space maximised for storage and functionality, even natural light has been lacking in some industrial workplaces.

Outdoor areas have equally been prioritised for transport access, parking, loading, landscaping and security.

Modern fit outs are changing and occupiers are now looking to provide larger break out areas, gyms, lager and wider offering on site canteens and cafes and health and wellbeing suits and even fitness trails.

Recruitment is a big driver of the change. The availability of labour is influencing occupiers’ decisions on location. Labour stats in the Sheffield City Region are attractive. Latest figures from the Office of National Statistics on labour supply from April 2018 to Mar 2019 show that 941,200 people are economically active (either employed or unemployed) with around 67,000 people aged between 16-64 wanting a job.

Once occupiers have recruited, they are looking closely at the needs of their staff and the benefits of creating the improved work/life balance is helping to recruit and retain quality staff.

Our latest research report covers the challenges of e-commerce and what the solutions may be in Future Gazing – Logistics - The Last Mile.

The research examines the challenges and opportunities brought by structural change in consumer demand and how real estate strategy is being influenced far beyond the retail sector.

Read more here.