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Tag: Big Box

Logistics Parks Development Planned

Posted on by David Priestman

Tritax Big Box Developments (TBBD) has announced new phases at three of its major UK logistics parks with a further 2.57million sq ft development planned.

At Tritax Park Oxford, the logistics developer has submitted plans to build 1.75million sq ft of state-of-the-art accommodation across nine units ranging in size from 98,000sq ft up to 317,000 sq ft. Extending up to 160 acres, the Park is situated directly alongside the M40 at J9 and the A41.

This second phase of development is estimated to create approximately 220 construction jobs; 2,105 jobs during operation and generate up to £9.87million of business rates per year.

Planning for the second phase at Tritax Park Oxford comes as TBBD is midway through the development of a new 600,000 sq ft production facility for Siemens Healthineers on phase one. Once in operation, the Siemens site will be used to design and manufacture superconducting magnets used for MRI patient scans in healthcare facilities globally and will support more than 1,300 skilled jobs.

Meanwhile, at Symmetry Park Biggleswade, TBBD has commenced the development a new, bepoke 65,847 sq ft facility for Warburtons along with four high-quality logistics buildings totalling over 750,000 sq ft, ranging in size from 139,500 sq ft up to 287,200 sq ft. This third phase will be built to BREEAM ‘Outstanding’ and EPC A+ rating. There will be a staged completion of these facilities over a six-month period, starting from Autumn 2025 onwards.

Tritax Park Oxford

Finally, TBBD has submitted a detailed planning application to Cherwell District Council for phase three at Symmetry Park Bicester. The plans would see the delivery of 270,000 sq ft industrial and logistics space across two mid-box units measuring 155,000 sq ft and 115,000 sq ft.

Speaking about the development progress, Tom Leeming Director at Tritax Big Box Developments: “Bringing forward multiple phases of development at these well-established schemes further underlines our team’s ability to identify and create best in class space for our existing and prospective clients in prime locations, such as these sites across the Oxford-Cambridge corridor.”

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Professional Big Box

Posted on by David Priestman

Peter MacLeod asks directors of Tritax Big Box about some of the specific challenges facing the UK industrial property development sector.

Tritax Big Box Developments is making waves in the warehouse development sector. It describes itself at the UK’s largest logistics development platform with around 40 million square feet of
developable space, over 100 assets across the UK, and the UK’s largest portfolio of logistics investment assets. I fired questions at a few of Tritax’s senior directors to find out more about the challenges and opportunities that lie ahead for the company, focusing initially on sustainability.

I asked Alan Somerville, ESG Director, Tritax Management, what denotes a sustainable warehouse, and what are Tritax’s customers seeking. He replied that the definition of a sustainable
warehouse is one that is energy efficient, low carbon, has a resilient power supply, features onsite renewables such as solar, has internal and external infrastructure for staff wellbeing, and one which is effectively connected by different forms of transport.

“Our customers are seeking buildings which are fit for their operations both today and tomorrow,” said Somerville. “Buildings which are cost effective, efficient, aligned to their own corporate
sustainability ambitions and the best possible workplace for staff.”

Accommodating Automation

Turning to Mark Fergusson, head of client engagement, Tritax Big Box REIT, I asked what considerations have to be taken into account to ensure a warehouse can handle today’s levels of automation. “There are a number of considerations we as a leading developer landlord are incorporating into our solutions for clients, recognising the increasing role automation is playing in their operations,” he replied.

“Specification – Automation requires a high-quality floor, whether that is for the additional load bearing to accommodate high bay cranes or facilitate the smooth movement of autonomous robots
supporting picking operations. We are also seeing clients demanding higher minimum eaves heights to either support high bay automated ASRS cranes or install mezzanine floors and conveyors
for co-pack and picking operations.

“Power – The increased levels of automation is also resulting in clients needing access to greater levels of power (ideally from sustainable sources) both to fulfil their existing requirements as well as catering for the likelihood of further automation and the additional power required in the future. This is accelerating the deployment of solar PV on our existing assets as well as it being a standard feature of all of new units to reduce the reliance on the grid.

“People – It is important that those warehouse operators deploying automation have access to skilled labour like engineers who can support the technology. We are seeing a number of clients partnering with local colleges and offering apprenticeships to increase the numbers of engineers with the right skills in the labour force.

“Flexibility – The types of operation and activities being automated is accelerating and the return on investment for the deployment of these solutions is looking increasingly attractive. It is therefore key we ensure the assets we develop and own provide our clients with the spec, power and access to people. This should ensure operations have the flexibility to accommodate new innovative
automated solutions deployed in the medium to longer term which will undoubtedly end up being a common feature in the warehouse of the future.”

Finally, with greenfield sites becoming harder to obtain due to both legislation and physical availability, I asked Jonathan Dawes, head of planning at Tritax Big Box Developments, how difficult this has actually become. He responded by saying: “Despite a continued Government focus on ‘brownfield first’, there are not enough brownfield sites to accommodate all development requirements and meet the Government’s growth agenda. As such, there will be a need for greenfield development for all use types. The current planning environment reform maintains a strong focus on residential development. We would like to see industrial and logistics development addressed in the same way as it’s essential that there is sufficient infrastructure in place to support these new homes.

“Local Authorities and statutory bodies are increasingly stretched and underresourced. The planning system is also increasingly being asked to consider more: Biodiversity Net Gain; Climate
Change; Energy; Sustainability. It is a very complex and challenging landscape to navigate, and the system as a whole is still not aligned with the Government’s pro-growth agenda.

“The devolution agenda adds a further layer of complexity/uncertainty, albeit for logistics, will hopefully address the ‘larger than local’ needs of the sector, with Spatial Development Strategies
recognising and meeting this – the key ask remains for a standard employment need methodology.

“It is not becoming harder to develop on greenfield sites per se: the challenges and timescales of achieving planning permission remain, such that an experienced development partner is essential to navigate this process, and in the short term at least, it is not going to get any easier as the planning reforms/devolution play out.”

Given its market position, Tritax is well-placed to comment on the sector. It remains a challenging yet ultimately worthwhile business to be a part of, as consumers continue to seek greater flexibility and availability of goods.

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Increase in BigBox Take Up in 2024

Posted on by Will Priestman

New analysis by Avison Young of the industrial and logistics sector highlights a notable rebound in the take-up of grade A big-box distribution units over 100,000 sq ft in 2024, with a total of 21.2 million sq ft leased throughout the year, an 11% increase from 2023. Despite remaining 33% below the five-year average – a comparison skewed by exceptional demand during the global pandemic – improving occupier sentiment and a surge in deal-making helped push volumes above last year’s levels.

The Midlands, particularly within the ‘Golden Triangle,’ continues to dominate the market, accounting for 42% of all leasing activity in 2024. Prime locations in this area remain a key draw for both occupiers and investors, underlining its status as a hotspot for logistics and distribution activity.

At the close of 2024, grade-A supply stood at 51.6 million sq ft across 220 units, representing a 9% increase from the previous year. Of this, 41% are newly completed speculative units, while 39% are second-hand units and 20% are still under construction. However, a significant shortfall remains in the supply of larger units, particularly mega sheds of 400,000 sq ft and above, with only 10% of the current pipeline meeting this demand.

Investment in single-let big-box distribution units saw a dip in 2024, with total spending amounting to £1.04 billion, down 12% from 2023 and 62% below the five-year average. This downturn reflects broader macroeconomic challenges, though the sector’s strong fundamentals continue to attract interest, as evidenced by a substantial increase in investment activity during Q4. £423 million was invested in single-let distribution units in Q4, up by 116% compared to the previous quarter. This resurgence suggests a more favorable outlook for 2025, with further activity anticipated in the coming year.

Avison Young reports that with inflation easing and interest rates expected to decrease gradually, market conditions are expected to stabilise, fostering more activity in the capital markets. The sector’s strong potential for delivering robust returns compared to other asset classes continues to make it an attractive investment option. The analysis predicts a rental growth rate of 4.3% over the next five years for the logistics sector, outpacing office (3.4%) and retail (1.8%) sectors, driven by sustained demand in prime locations.

David Willmer, Principal and Managing Director, Industrial and Logistics at Avison Young, said: “Looking ahead to 2025, the outlook is more positive, driven by a decline in inflation and anticipated interest rate cuts, although at a more gradual pace than originally expected. This should stimulate greater activity in the capital markets, while the sector’s potential for delivering strong returns compared to its peers remains clear. Despite high stock levels and an imbalance in shed sizes, prime headline rental growth continues to be resilient, particularly in prime locations, underlining the strength of the industrial and logistics market.”

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New Team to meet Logistics Property Market Demands

Posted on by David Priestman

Prologis, the UK’s leading owner and developer of logistics property, has announced two changes in its Capital Deployment & Leasing team as it continues to pave the way in an evolving market.

Ian Romano steps up to Vice President – Head of Land and Development and will widen his current remit to encompass regions outside the Midlands (excluding London) and will lead on land acquisition and development activities. Ian will act as a key partner to Prologis’ Development Management team, ensuring the business is aligned on delivering the next generation of Prologis Parks.

As Vice President – Head of Leasing, Sally Duggleby will be responsible for all leasing activity across Prologis’ UK estate, including speculative, second generation and lease renewals. Sally will also act as a key partner to Prologis’ customer facing teams to ensure a customer-centric view throughout commercial negotiations.

Both Sally and Ian will continue to report to Robin Woodbridge, Head of Capital Deployment & Leasing UK, who will also maintain direct responsibility for the London team whilst remaining strongly embedded in all activity at Daventry International Rail Freight Terminal (DIRFT); the business’ largest UK asset.

Paul Weston, Regional Head, Prologis UK, said: “In addition to our strengths in the ‘big box’ market, Prologis UK’s position has evolved significantly over the past five years, with our portfolio now featuring urban logistics, data centres, and life sciences, with further development on the horizon.

“These changes to the Capital Deployment & Leasing team will ensure we have the right people focused on two of our core activities of development and leasing, both of which are becoming increasingly challenging to navigate.

“Sally and Ian have both made significant contributions to the business’ strategic development so far, and I am confident they will continue to do so in their new positions.”

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2023, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (113 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,600 customers principally across two major categories: business-to-business and retail/online fulfilment.

Senior Appointment for Warehousing Firm

Posted on by David Priestman

Big Box Group UK is pleased to announce the appointment of Stuart Rathbone to the role of Buildings Division Lead, reporting to Managing Director, Iain Gillard.

Stuart, pictured, brings extensive managerial experience from senior industry roles incorporating sales, operations and project management. This experience, which includes the delivery of one hundred successful projects in under three years, allied with a wealth of technical knowledge, will help Stuart to develop the expertise Big Box Buildings offers.

Big Box Buildings provide both temporary and permanent structures. The buildings division works closely alongside Big Box Intralogistics to provide racking and mezzanine, whilst incorporating the expertise of Big Box Automation.

Commenting on his new role, Stuart said, “My immediate priorities are to use my experience and knowledge to underpin technical expertise within the buildings division, introduce protocols and set up instinctive systems that the team can pick up and easily manage. If one benefits, we all benefit. This is a rapidly expanding sector and I’m excited to be a part of such a dynamic company with a big future.”

Commenting on his appointment, Big Box Group Managing Director, Iain Gillard said, “We are constantly striving to attract and retain outstanding talent and Stuart’s appointment marks an important milestone on our journey. It reinforces the experience and expertise we are building across our major operational areas, contributing a wealth of skill and experience that will help grow the company.”

WMS: Size Doesn’t Matter

Posted on by David Priestman

If an SME is struggling with its warehouse operations and WMS, Big Box Group may have just the right answer, as Peter MacLeod discovers.

Unlike many other systems integrators operating in the logistics space, the Big Box Group says its expertise lies in optimising the operations of SMEs, rather than the household-name high street and ecommerce retailers. The group comprises three business units, namely a rapidly growing warehouse intralogistics company (dealing with racking, mezzanine floors, warehouse design and material handling products), a temporary warehouse company (although many of these so-called temporary solutions are still in everyday use decades later) and an automation arm, which covers AGVs, AMRs, goods-to-person systems, tote-to-person systems, through to scanning technologies, RFID and WMS.

Jason Dyche (pictured), Big Box Group’s Division Director, says that post-lockdown, SMEs have spent three years getting goods out of the door and hitting sales targets rather than looking at where to invest to optimise their processes, so there are now opportunities to help them bring their systems back up to date. With the IT element of the industry’s technological advances arguably running at a faster pace than other more physical aspects, Dyche feels a modern WMS system such as that offered by Big Box Group can offer small businesses the greatest immediate gains.

As an independent supplier, Big Box says it can offer solutions based on the customer’s specific needs. But sometimes in the case of SMEs the customer doesn’t have a brief – they know improvements need to be made but don’t have the specific knowledge to pinpoint exactly where. That’s where Big Box comes into its own, walking a business through its pain points and offering options to solve them whilst working to a set budget. A second challenge is that sometimes these businesses also don’t know what their budget is. A further challenge is when a customer’s IT department is change averse.

“Yes, that can be a bit of a stumbling block especially in smaller companies,” says Dyche. “We come up with some efficient solutions for colleagues and decision-makers within that business. But a lot of companies don’t find it particularly easy to understand what systems are brought into place, So we try to organise a steering group meeting, which somebody will head-up from that business, and then you can go through the whole process so the company knows exactly what you’re looking to do. We’ll also involve not just the heads of the company; we include operations and pickers from the warehouse . It’s vitally important in order to engage with end users.”

Those pain points could be related to ordering, inventory, scanning efficiencies, or the purchasing area of the business. Increasing picking accuracy towards 100% from the current industry-standard 95-97% is another area where Dyche is focusing. “We can’t be all things to all men, but if I see a business that is struggling with their systems, then I will bring in the right resource to come up with a solution. Our aim is to achieve increased productivity and increased accuracy. We can also look to reduce carbon footprint and emissions on the back of a new WMS system, especially as compliance in this area is getting stricter.”

Operating out of a satellite office in Beverley, in the East Riding of Yorkshire, Big Box Group covers the entire length and breadth of the UK. Rather than retaining a large staff, its strategy is to boost its existing in-house capability by bringing in expertise on an as-needed basis. Thus by only having staff overheads when actual projects are successfully won, Big Box believes it can approach SMEs with a solution that’s likely to be more cost-effective for them.

Whatever aspect of the business is being improved, Dyche always calculates achievable payback options, a task not always simple when not all businesses have a clear idea exactly where their costs have previously been accounted for. It’s important to use a collaborative approach which effectively wins the hearts and minds of a customer’s workforce. Dyche says increased employee satisfaction is a major goal: “If you can get more people on board and understand the reasons for change, this inevitably makes their lives a bit easier, resulting in increased productivity. A happier workforce means everybody is pulling together.”

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