With vacancy rates spiking in the industrial and logistics sector, a new thought leadership article from Lockton illustrates the challenges for landlords with vacant assets, and how risk mitigation can protect properties until tenants are sourced.
Written by Adam Pursey, Senior Vice President, and Samuel Leader, Vice President, the insight identifies how the I&L sector continues to grow at 3.5% annually, but investors remain cautious as many occupiers have excess space or are slowing expansion.
Greater supply is giving tenants more choice, raising expectations around electrification, renewable power, and energy-efficient design, with compliant buildings earning a “power premium.” ESG is now also about social value, with investors expecting landlords to support communities and create better workplaces, the research explains. It adds, too, that occupiers also increasingly want sites that support employee wellbeing, including breakout space and better layouts, as these factors help attract talent and reduce absenteeism.
“These forces are reshaping the market and creating a faster-moving, more complex risk landscape – one that landlords can’t afford to ignore,” the article states..
It also urges proactive security, inspections, and access controls to help prevent damage and deter intruders to empty premises – spotlighting that effective risk management requires a joined-up approach between landlords, insurers, and sector experts to build resilience in a volatile market.