It was the “straightforward and down-to-earth” people they met and got to work with that initially drew Nick Waddington and Adam McGuinness to the industrial and logistics sector early in their careers. And now, as Carter Jonas’ new industrial partners, they hope to introduce a younger cohort of property professionals to a sector they describe as “exciting and evolving”.
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ISSUE 01 | OCTOBER 2022
"It’s about creating career pathways, organising events and introductions to build those connections with the team and key clients"
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Nick Waddington, Partner
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Nick Waddington
0121 824 0771
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The two joined Carter Jonas in March, having sold their niche agency MWRE to the firm. Prior to that, they’d worked in a number of big agencies in London and Birmingham, and the contacts forged during that time have proved fruitful.
New industrial partners talk people and market prospects
“It’s a relationship business, so making connections and getting on with people is important, and the result is repeat business,” says McGuinness.
And part of the enjoyment is the variety of people you meet. Waddington says: “The nature of the industrial and logistics sector is that there is a wide range of businesses and users.”
They’ve seen the market evolve from the early days of their careers, and one key difference is reflected in how distribution has become more familiar to the man on the street. The rise of online retail and home delivery, particularly during the pandemic, has made logistics and warehouses slightly less mysterious to those outside the industry.
Selling up was never the ultimate ambition in setting up MWRE, but the move to Carter Jonas was driven by the right opportunity in the right market.
Logistics space demand was high during the pandemic as people turned to online shopping and home deliveries, but there are different economic headwinds now, so what is the outlook for the market?
“Clearly, there are the wider macro-economic effects of supply chain issues, material shortfalls, and increased costs, and that may impact land values and funding markets,” says McGuinness. “There will be a certain amount of caution, and the froth will inevitably come off the market.”
Nonetheless, the appetite from the occupational market, particularly for sub-100,000 sq ft and 250,000+ sq ft units, remains “robust”.
Retail, particularly budget retailers still drive demand, but there is increasing demand from lease events as occupiers look to create operational efficiencies with cost-effective buildings. The rise of automation means new and bigger buildings to make the investment worthwhile.
Waddington says there is increasing demand from the supply chain supporting electric vehicle manufacturing and green tech. “Efficiencies will also be driven by on-shoring to circumvent supply chain issues and consolidation, which means opportunities,” he says.
"It’s a relationship business, so making connections and getting on with people is important, and the result
is repeat business,"
Adam McGuinness, Partner
But while the fundamentals of the occupier market remain strong, there is still the challenge of supply.
“There are enough occupiers that need to look at their space requirements to support robust demand at a time when supply is short,” explains Waddington.
Industrial is land-hungry, and with the added pressure of increasing construction costs and painfully slow planning, the demand/supply imbalance isn’t going to improve quickly. It makes the collaboration between land, corporate and agency teams all the more critical.
“With that pace of change, it is exciting to think where the quality of product will get to in 5- or 10-year’s time, particularly with the focus on sustainability,” he says.
And this taps into what both Waddington and McGuinness both relish about working in the sector, and how it continues to evolve. McGuinness points to what was considered state-of-the-art for a logistics building ten years ago compared to now.
The provision of staff amenities is another big change over the last decade. “Gyms, basketball courts, Starbucks…these businesses want to attract the right staff and how that evolves in the coming years is also exciting,” adds Waddington.
“For those who don’t work in the sector, they’d probably be quite surprised; logistics buildings are a long way from the ‘grotty sheds’ of old.”
Adam McGuinness
0121 824 0770
EMAIL ADAM
Read more:
Life sciences
BTR
AI
Riding a market wave and weathering an economic storm
Where there is challenge,
there is opportunity
Corporations increasingly embrace Artificial Intelligence, setting off deep changes in the use of the office
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ISSUE 01 | OCTOBER 2022
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UP NEXT:
CONTACT:
Life sciences
BTR
AI
Riding a market wave and
weathering an economic storm
Corporations increasingly embrace Artificial Intelligence, setting off deep changes in the use of the office
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