Month: July 2019

Stolt Tank Containers (STC) has recently completed its US$11 million investment at its Houston, Texas depot, increasing storage capacity by 40% to 80,000 square metres. This significant upgrade means the depot now has the capacity to store 3,000 empty and 400 loaded tanks, offering customers a one-stop-shop for loading, storage, heating, cleaning and repairs.

The Houston metropolitan area comprises the largest concentration of petrochemical manufacturing in the world as well as the busiest US port for foreign tonnage. STC’s strategic advantage of an inhouse depot in Houston provides a level of response and support for customers that is unparalleled in the industry.

Dan Shelton, Depot Manager, Houston, said: “We have increased our storage capacity by 40% – laying 12 acres of concrete in order to maximise the use of our property. Unlike other depots with more basic conditions, concrete offers a smoother surface for the movement and storage of tank containers. A new workshop has also been added which is dedicated to the repair and servicing of high-pressure gas tank containers.

“We understand that safety is the number-one priority for our customers, and we make it ours too. We’ve installed new fall protection and a facility-wide emergency siren. Our new automated heating system has raised safety levels at the depot even further, as our technicians can focus on the safe management of the overall heating process. The system has also improved turnaround times for heating services. STC Houston offers customers the convenience of one location where our team of dedicated, highly trained staff can heat products, clean and repair tanks. Having these services available in one, accessible central point can help customers reduce costs related to additional movement by road and chassis rental.” added Dan.

“All our recent investments are focused on putting customers’ needs first,” said Mike Kramer, President Stolt Tank Containers. “2019 will be an exciting year for STC as we continue to expand our depot network. We recently opened two new depots in Saudi Arabia and our modernised depot at Houston is setting the standard for depots around the world. This month we also launched our new online service: Track and Trace which enables customers to check and follow the status of their cargo in real time. We’re proud of our ability to offer our customers a wide range of reliable services, using some of the most modern equipment and technology in the industry.”

2018 was a record year for industrial and logistics investment volume in the UK with £8.4bn of assets changing hands, according to a new report.

The Industrial & Logistics Market 2019 report by Lambert Smith Hampton claims that 2018 was a record year for industrial and logistics investment volume with £8.4bn of assets changed hands, driving the sector to outperform the rest of the commercial real estate market.
Despite the growing uncertainty around Brexit, the research shows occupiers were active during 2018; although overall take-up was 4% down on a five-year average, it was only slightly below 2017’s total.

UK employment remains a major spot for the economy and has delivered consistently positive news in recent quarters. Wage growth has accelerated to an 11 year high of 3.4%, and a continuation of rising wages and low inflation could spur further spending growth, which could be a significant boost to the UK economy.

The logistics segment stole the show, with UK take-up in units above 100,000 sq ft falling just short of 2016’s record high. It was, however, a different picture at the smaller end of the market. Despite an increase in supply, mid box (50,000 sq ft to 99,999 sq ft) take-up was the worst in nine years after a record year in 2017. The result raises questions about whether the new supply is meeting occupier needs on location and specification.

The report by LSH expects 11.7 million sq ft of speculative development to come forward in 2019, which will go some way towards restoring choice at the larger end of the market. However, the current boom in speculative development is heavily weighted to the logistics sector.
The development response at the smaller end of the market has remained elusive in this cycle, and there is a danger that the critical lack of supply of quality medium-sized and small properties will continue, despite robust levels of demand.

Strong overall results also hide a striking difference in performance between UK regions. Take-up in East Midlands hit a record 14.6 million sq ft, and big box logistics take-up increased 93%. In contrast, take-up in the West Midlands hit a six-year low due to a lack of large logistics deals.
The threat of a no-deal Brexit has resulted in a cautious start to 2019, but if this is avoided, demand could be released with a rebound in activity. Logistics occupiers are likely to take more space as e-commerce continues to grow, though as the sector is heavily reliant on an EU workforce, it could be affected by a growing labour shortage over the coming years.

James Polson, National Head of Industrial and Logistics at LSH, commented: “The hive of activity across the industrial and logistics sector continues unabated. The driver remains the UK’s evolving ecommerce sector, with investors and occupiers alike clamouring for stock.

“Interestingly, however, there are clear areas to watch. The top of the tree overall performance is masking a weaker underbelly in certain areas. The challenge is clear, to satisfy demand across the entire market by providing the right properties at the right time.”
As consumer shopping habits continue to fuel the growth in ecommerce and the evolution of UK distribution, the market is presenting significant opportunities for developers to create the properties that the sector needs.

2018 was a record year for industrial and logistics investment volume in the UK with £8.4bn of assets changing hands, according to a new report.

The Industrial & Logistics Market 2019 report by Lambert Smith Hampton claims that 2018 was a record year for industrial and logistics investment volume with £8.4bn of assets changed hands, driving the sector to outperform the rest of the commercial real estate market.
Despite the growing uncertainty around Brexit, the research shows occupiers were active during 2018; although overall take-up was 4% down on a five-year average, it was only slightly below 2017’s total.

UK employment remains a major spot for the economy and has delivered consistently positive news in recent quarters. Wage growth has accelerated to an 11 year high of 3.4%, and a continuation of rising wages and low inflation could spur further spending growth, which could be a significant boost to the UK economy.

The logistics segment stole the show, with UK take-up in units above 100,000 sq ft falling just short of 2016’s record high. It was, however, a different picture at the smaller end of the market. Despite an increase in supply, mid box (50,000 sq ft to 99,999 sq ft) take-up was the worst in nine years after a record year in 2017. The result raises questions about whether the new supply is meeting occupier needs on location and specification.

The report by LSH expects 11.7 million sq ft of speculative development to come forward in 2019, which will go some way towards restoring choice at the larger end of the market. However, the current boom in speculative development is heavily weighted to the logistics sector.
The development response at the smaller end of the market has remained elusive in this cycle, and there is a danger that the critical lack of supply of quality medium-sized and small properties will continue, despite robust levels of demand.

Strong overall results also hide a striking difference in performance between UK regions. Take-up in East Midlands hit a record 14.6 million sq ft, and big box logistics take-up increased 93%. In contrast, take-up in the West Midlands hit a six-year low due to a lack of large logistics deals.
The threat of a no-deal Brexit has resulted in a cautious start to 2019, but if this is avoided, demand could be released with a rebound in activity. Logistics occupiers are likely to take more space as e-commerce continues to grow, though as the sector is heavily reliant on an EU workforce, it could be affected by a growing labour shortage over the coming years.

James Polson, National Head of Industrial and Logistics at LSH, commented: “The hive of activity across the industrial and logistics sector continues unabated. The driver remains the UK’s evolving ecommerce sector, with investors and occupiers alike clamouring for stock.

“Interestingly, however, there are clear areas to watch. The top of the tree overall performance is masking a weaker underbelly in certain areas. The challenge is clear, to satisfy demand across the entire market by providing the right properties at the right time.”
As consumer shopping habits continue to fuel the growth in ecommerce and the evolution of UK distribution, the market is presenting significant opportunities for developers to create the properties that the sector needs.

A national supply chain solutions firm based in Northampton is helping to make Britain greener by providing sustainable packaging for a multi-award-winning, natural lifestyle products customer.

Crick-based transport and logistics firm The NX Group has been providing warehousing, ecommerce and retail distribution services for KINN Living, a producer of organic and eco-friendly beauty, laundry and cleaning products, for just over a year. Founded in 2017, and having secured a deal with Waitrose by early 2018, KINN soon afterwards chose to use The NX Group for all of its retail distribution. The two companies then agreed upon a recycled packaging option in line with KINN’s brand ethos of “clean beauty” for its customers, their homes and the environment.
The packaging is a low-cost, ready-to-use, manual paper voidfill system made from 100% recycled paper. It is easy to handle and compact, meaning it requires little storage space, which is advantageous for both the customer and the stockist.

Sophie Lavabre Barrow, Co-Founder and Head of Brand at Kinn Living, said: “We’ve found The NX Group so incredibly helpful from the very beginning; they helped make the initial stages of our arrangement with Waitrose go as smoothly as possible. We were also delighted at the firm’s willingness to cater for our packaging requirements. Some time ago we had a fraudulent order that the team at The NX Group managed to stop at the last minute, so I can say from experience that they definitely go above and beyond for their customers.”

BNP Paribas Real Estate has stepped up its sector diversification strategy with the creation of a new service line: “Logistics and Supply Chain Consulting”. The move supports the business’ long-term ambition to increase its service offer for logistics assets, in which clients are showing a growing interest.

The new division will be headed up by the founding partners of Traker, Mike Haziza and Erwan Giraud supported by their team of 10 consultants. The aim of this new service line is to make industry players more competitive by modernising their supply chain.

Since its inception in 2008, Traker has undertaken over 200 projects across Europe for around 100 clients from various sectors (industry, retail, logistics, services).

“Traker has established an excellent reputation for its consulting services with outstanding references. We share the same culture of strategic and operational excellence, which will support the success of our clients. Our offer will enable us to provide global solutions while guaranteeing vertical expertise on logistics”, says Laurent Boucher, chairman of BNP Paribas Real Estate Advisory France.

This Supply Chain Consulting service will provide upstream support for the integrated and interlocking services that BNP Paribas Real Estate can offer its investor and occupier clients when implementing their logistics masterplans (renting or buying premises, turnkey transactions, investment, valuation, property management).

“We are incredibly proud to partner with BNP Paribas Real Estate. We have collaborated with them for several years and share the same enthusiasm for sustainable solutions as well as a culture based on excellence, groundwork and boldness. This integration will enable us to bolster our capacity to innovate and create value for our customers’ supply chains, while opening up new development opportunities for our team”, say Erwan Giraud and Mike Haziza.

As such, BNP Paribas Real Estate continues to develop support to its clients in Industry – Logistics – Retail throughout their European logistics schemes. This follows the organisational consolidation of the transaction team and the recruitment of Arthur Rodriguez, formerly deputy head of major industrial and logistics schemes for CBRE France, and the introduction of pan-European coordination at the head office of BNP Paribas Real Estate in Issy-les-Moulineaux, France.