With a growing shortage of quality in warehousing space, facilities managers (FMs) are being advised to consider a temporary solution as a serious alternative in the race to generate more space.
Property experts are reporting a surge in the industrial property market after a sharp increase in the amount of capital available to developers, claiming investors are now prepared to provide ‘forward funding’ for new warehouses, rather than wait to buy completed buildings and risk seeing rivals build higher or faster.
But Scott Jameson, managing director of Spaciotempo, says temporary buildings can create equally effective and much cheaper storage solutions in response to fluctuating market demand.
“The increasing shortage of good floor space is causing an increasing headache for many logistics managers, who need to find warehousing solutions quickly.
“The shortfall looks set to be plugged by investors stepping into the industrial property market.
“The key to this new level of investment is forward funding – a concept which developers and property investors would have you believe is now the only choice for FMs in need of a new warehouse.
“But none of this takes into account the practicality of the temporary warehouse as a solution for companies who want full control of their storage capacity and who need to respond to the shifting demands of their business.”
Data from CBRE, the world’s largest commercial real estate services and investment firm, suggests that £2.75 billion was invested in the first half of 2014 (a 25 per cent increase on the already inflated figure for the same period 12 months ago). This figure is likely to be over £6 billion by the end of the year.
However, Jameson insists a temporary warehouse can provide a far more flexible, low-risk and cost-effective solution, providing businesses with the building they need, for as long as they need it, as opposed to looking at speculative development backed by forward funding.
Spaciotempo provide an extensive range of standard or bespoke temporary building solutions throughout Europe.