Mixed use of logistics and industrial properties

If there is a shortage of both commercial and residential space in urban areas, why not combine the two? Modern construction methods allow for the multifunctional use of large properties. With appropriate architectural planning, logistics and industrial properties can be combined with office space or apartments, for example. This hybrid solution offers relief for the housing market as well as for the shortage of space in commercial properties.

Mixed use: a challenge for logistics specialists

There are already numerous examples of mixed-use properties in many cities. These are often multi-storey buildings with retail outlets on the first floor and offices, doctors’ surgeries or apartments on the upper floors. As different noise levels and numbers of storeys are permitted in urban areas than in rural areas and the mixing of several types of space in cities is more easily regulated under building law, mixed use is a good option for large properties. However, this is somewhat more complex for logistics and industrial properties. As these can often be somewhat louder than a retail store and work is sometimes carried out at night, appropriate noise protection must be provided. When selecting the building materials, attention should be paid to a high level of insulation for sound absorption and certain architectural conditions, such as a suitable ceiling height, must also be met. This is why mixed use with retail is more suitable for medium to large logistics and industrial properties.

Other European countries are leading the way

In Germany, this concept has so far almost only been used in small city logistics locations. One example of this is the so-called dark stores: Former retail stores with covered shop windows that are used as warehouses for the last mile. In other countries such as France or the UK, the mixed-use concept is already being used more frequently for large logistics and industrial properties. In Segro Park Hayes near London, for example, a large former factory is currently being converted into a building complex with apartments and production and logistics space. In order to create more usable space, the concept of mixed use would also be conceivable for medium-sized logistics and industrial properties in Germany in the future. Companies from these sectors could use the first floor for themselves, while the higher floors would be suitable for offices, medical practices or apartments. The use of ramps and freight elevators would also make logistics space on the upper floors conceivable, but multi-storey logistics properties have hardly been implemented in Germany to date due to complex building regulations.

Lack of space brings movement to the market

In addition to creating more usable space in urban areas, the mixed use of a property also offers financial advantages. In most cases, the rents for residential and commercial space are considerably cheaper than for properties that are used exclusively by one party. This also gives small companies the opportunity to rent an inner-city location. Increased mixed use will also reduce the pressure in the competition to attract logistics and other businesses, which would have a positive impact on rents in the long term.

In view of the acute shortage of space and rising rents, it can be assumed that the logistics and industrial real estate market in Germany will also undergo some changes in the coming years. Multi-storey buildings and mixed use could also become the standard in Germany in the future. At BUILDINX, you can find out what such concepts look like in detail and how they are best implemented. The first business platform covering the entire value chain of innovative logistics and industrial real estate offers you the opportunity to network with the right contacts and ask experts about this topic.

Author: Verena Zieringer