The Inspiration
November 2024

We decided to call it The Warehouse Boom - and in this edition of the Inspiration we are going to deep dive into how industrial real estate is reshaping the UK and US real estate market.

To portray this trend, we share a few of our warehouse and industrial projects we did for major clients in that sector. We’ve been very fortunate to work with one of the biggest names in the industry - follow along to learn more and see the images in which we bring those projects to life.

As the year is ending, we’re also extremely excited to share WtR highlights from 2024. The market is still not short of challenges, but we managed to work with amazing partners and deliver stunning renderings and marketing collateral - follow on to learn what are the highlights we want to show you!

The growth we’ve been seeing in the warehouse sector over the recent years is remarkable.

According to this article, the number of logistics premises in the UK has doubled over the past decade, with warehouse space expanding by 61% since 2015. It now approaches 700 million square feet. If that wasn’t enough data for you - the warehouses that are over 1 million square feet saw an increase of 345% in the last years. Impressive, right? The US market is not different regarding growth trends - Industrial stock rose by nearly 25% in the last decade.

The market and industry trends are one thing, but the warehouses also changed when it comes to the functionalities they provide, changing from just storage facilities to multi-purpose business operation centers.

There’s also a visible surge in the need for more technologically advanced warehouses, with functionalities targeted specifically to e-commerce needs - rapid delivery times, repairs, and on-site returns being a few of them. To meet those needs, and make them more time and cost-efficient, the warehouses in both markets are being located closer to the densely populated areas than they used to be.

The booming warehouse sector has dramatically altered the investment landscape in both UK and US commercial real estate.

In the UK, companies specializing in warehouses and logistics properties have gained significant prominence in the stock market, often outperforming traditional commercial property firms. In the US, the industrial sector is forecast to have the highest-ranking net operating income growth of all core and alternative sectors from 2024 to 2028. Both countries have seen industrial property values stabilize faster than other commercial real estate sectors following recent market corrections, indicating strong investor confidence in the sector.

The warehouse and industrial real estate sectors in both the UK and the US are set for continued growth and innovation in the coming years. Despite recent economic challenges, the foundation that is driving demand remains strong. E-commerce expansion, reshoring of manufacturing, and the need for supply chain resilience are expected to push further development of modern logistics facilities.

With institutional investors increasing their allocations to this sector and a focus on rapid delivery and specialized facilities, the warehouse boom appears to continue, offering exciting opportunities for innovation, economic growth, and transformation of the commercial real estate landscape in both the UK and the US markets.

we wanted to share with you our highlights, both on the CGI front and also on the field of digital solutions for leasing. We are very fortunate to work with partners that allowed us to have a creative, successful year. We managed to work with amazing retail spaces, big residential developments, and countless workspaces, both as new developments and refurbishments, across the EU, UK, and US markets.

Our efforts to bring modern, seamless digital tools for leasing brought us a lot of great partnerships with year. While waiting for the very first Digital Twin to go live, you can visit our previous newsletter and see how our solutions can make the leasing process more time and cost-efficient. Click here to find out more.

Scroll through the gallery of some of the most beautiful CGIs we were fortunate to work on this year!