A Light Industrial property can be identified by its central location and/or excellent transport links and its flexible use concept. In addition, as well as office space, it will almost always have a significant proportion of factory buildings or production areas with above-average room height and load bearing capacity. Another central factor is the ease of access for lorries, to ensure an adequate flow of goods.
City Logistics & Production
The demand for Light Industrial properties in urban economies is increasing; the growth in online trading means that the “last mile” is gaining in relevance. The delivery of goods within just a few hours of ordering requires a logistics chain with warehousing space close to urban centres. They can be found far more in the inner cities and industrial areas close to the centre – as a component of multi-use concepts, summarised under the term “light industrial”.
As well as warehouse space, these properties also offer space for low-emission production, such as additive manufacturing. The decisive factor is that light industrial properties can be used flexibly and rearranged. They are therefore different to traditional logistics and industrial properties, which were designed for a specific use or an individual company.
Investors are on the look-out For light industrial properties
The light industrial asset class is becoming increasingly popular with institutional investors owing to the attractive risk-profit ratio. The flexibility of property use and a normally high granularity of rental income ensures a wider distribution of risk than that possible in other property asset classes.
One challenge for Light Industrial project developers is balancing cost efficiency on the one hand and compliance with ESG criteria on the other hand. You can find out more about how INBRIGHT manages ESG here.