Concrete Analysis | Bright future for modern warehouses
Retail boom and improvements in transport network are driving the demand for modern warehouses in HK as traditional godowns are out
Warehousing has probably never been the most sought-after of the property sectors, and talk of rack space and pallets usually induces glassy-eyed boredom in all but the most involved participants.
This is all about to change. The forces now acting on this long-overlooked use of real estate are transformational, and the shrewder investors have already recognised this.
As any student of the science will tell you, distribution logistics comes about because the time, place and quantity of production vary from those of consumption.
What is changing is the nature of that consumption as the internet alters the traditional relationship between the consumer and the retailer, and between the retailer and the distributor.
The internet alters the traditional relationship between the consumer and the retailer
The traditional tasks of order processing, warehousing and transport have therefore taken on a new dimension as fewer goods are shipped to wholesalers and retailers and more are sent directly to homes and offices.