The industrial and logistics real estate landscape is at a critical point. After several years of unprecedented growth, owners, investors and occupiers are reassessing assets and location strategies as energy management, resilience, and cost efficiency have become top priorities.
JLL’s latest report – Powering Operational Excellence – reveals how energy management and resilience are reshaping leasing decisions in the industrial, manufacturing and logistics sector. Across the 900 occupiers researched in this study (representing 850M SF of leased space), we found 65% of their future space needs will be tied to a carbon reduction target, primarily through energy upgrades, fleet electrification and clean energy procurement.
Key highlights include:
- How energy-smart buildings drive operational excellence and cost efficiencies amid concerns over power availability and surging electricity prices. Retrofitting buildings allows owners to mitigate obsolescence risk, appeal to top tenants, attract and retain talent, and enhance value. Energy efficiency upgrades can reduce costs by 10-35%, and fleet electrification can save logistics companies 6-8% in overall P&L.
- Low carbon supply will struggle to meet demand but will vary by market and industry. Across the 18 hubs researched in this study, 41% of projected demand for low carbon space will not be met by 2030.
- Heightened operational and security threats loom from climate risk. Across the U.S., 69% of industrial inventory sits in the top 10 markets most exposed to climate risk. Ensuring business continuity and employee safety through enhanced physical resilience and onsite energy solutions is critical.
