Dentons and BENEWS collaborated to convene a panel of industry experts for a thought-provoking roundtable discussion, delving into the future trajectory of the industrial and logistics sector. Together, they explored emerging trends, debated challenges, and speculated on the sector's evolution in the coming years, with a particular focus on themes of sector dynamics and UK market attractiveness. Alex Coulter, partner at Dentons and Simon Creasey - Head of Content – BE News were joined by: Angie Fenton, director, Quod; Fiona Kilian, chief financial officer, Mirastar; Holly Mozley, senior asset manager, St Modwen Logistics; Bridget Outtrim, director, South East industrial team, Savills; Simon Perks, director, capital deployment and leasing, Prologis; Nick Preston, head of investment management, Panattoni; Cen Shen, head of Europe, JD Property; Otis Spencer, chief investment officer, P3 Logistics Parks and Henry Stratton, head of research, Tritax Management.

The industrial and logistics sector experienced a surge during and in the couple of years following the pandemic, fuelled by increased leasing and investment, particularly due to the rise of ecommerce. However, the past 18 months have been characterised by a reduced take-up of larger units and decreased investment volumes. Despite this, there remains optimism about the sector's future, driven by factors such as supply scarcity, rental growth and tenant retention. Investment and financing dynamics play a critical role, with industrial and logistics assets still viewed favourably by equity and debt providers despite challenging macro conditions.

The UK real estate market continues to attract overseas investors due to its efficient tax structure, transparent legal process and relatively strong economic performance, although positive economic news is seen as tangibly necessary for a step change stimulus for demand. Emerging trends in sectors such as life sciences, data centres and sustainable practices in building design are driving occupier demand. Looking ahead, there is an expectation of continued rental growth, supported by low vacancy rates and demand for better-quality buildings, although challenges such as planning regulations, power supply and labour shortages require attention for sustained sector growth.

Click to read the full discussion From revolution to evolution – what now for the industrial and logistics sector? as reported in BE NEWS on Wednesday 21 February 2024.