Utilizing flexibility and synergies

A special feature of light industrial real estate is that several commercial enterprises from one or more sectors can operate on one site. Ideally, they benefit from synergies with each other and can take advantage of opportunities for expansion. This mix of uses makes light industrial parks resistant to difficult economic developments - this is an advantage both for the operators and for the communities in which the parks are located. One practical example is the Hamburg South Light Industrial Park developed and operated by the global real estate group Goodman just outside Hamburg in Seevetal and in the immediate vicinity of the Port of Hamburg. The location appeals to companies that want to combine office, production, warehouse and perhaps also retail space under one roof. This property fulfills another criterion of the light industrial approach - the urban location in attractive catchment areas close to the city. This is particularly important for e-commerce companies, which can thus efficiently organize the "last mile" to consumers; optimal transport connections naturally play a decisive role here.

Seevetal is located on the industrial southern outskirts of Hamburg. Important production facilities for the automotive and aviation industries are only a few kilometers away. This also makes the location interesting for their suppliers - the last mile is also relevant for these industries with regard to the just-in-time principle.

150,000 hectares of brownfield land could be developed

However, suitable properties for light industrial parks are in short supply. One solution is the development of brownfield sites. According to the German Brownfield Association (DEBV), a total of 150,000 hectares of brownfield sites are available in Germany alone. Each site has its own history that needs to be recorded and processed. In Seevetal, for example, contamination had to be removed, some of which dated back to the war period. In the 1970s, a sand pit was created at the site, which was later filled with building rubble and organic waste. This produces gases that need to be treated carefully. In Seevetal, hundreds of thousands of cubic meters of soil and rubble were removed, sieved, replaced and compacted. Today, the site has been remediated and can be operated safely.

Sustainability must be taken into account

In this way, light industrial properties could be built in close proximity to the places where the goods produced or handled are needed. Materials can be reused in the construction of such buildings. Emission avoidance and sustainability play a major role both during reconstruction and during subsequent operation; appropriate programs are required here, for example the GreenSpace+ strategy developed by Goodman. Key elements include the installation of photovoltaic systems, smart meters to continuously monitor energy consumption and charging stations for electric vehicles and e-bikes. When designing the outdoor facilities, the focus should be on promoting biodiversity. The company has implemented all these aspects of GreenSpace+ at the Seevetal site.

Fast letting due to high demand

The economic relevance of the light industrial real estate concept is demonstrated by the successful letting of corresponding properties. At the Seevetal site, for example, the space in the first construction phase - almost 31,000 square meters - was let shortly after the ground-breaking ceremony. A further 10,000 square meters are currently being realized there as part of the second construction phase.

This success has motivated Goodman to develop another light industrial property near Hamburg in northern Germany. A 33,000 square meter property is being built in Hamburg-Wedel, also on a former brownfield site, which can be divided into units of 1,300 to 14,000 square meters. With its strategically favorable location in the Hamburg metropolitan region and optimal connections, this site will also help to meet the high demand for light industrial locations.

The article appeared in materialfluss 8-9/22.