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From materialfluss 3/2020

Logistics real estate as part of the employer brand?

Lots of daylight, lounge furniture and a foosball table for (creative) breaks - up to now, all of this has primarily been the preserve of young, hip start-ups. However, modern workplace concepts are now also finding their way into the logistics real estate sector.

© Segro

The image of logistics real estate has changed dramatically in recent years: Where once there were large gray concrete blocks on greenfield sites, today there are architecturally appealing, modern buildings in which, among other things, renewable raw materials are used in the form of wooden trusses. And it's not just the exterior that has changed. A lot has also happened inside the building in terms of employee friendliness.

This development is no coincidence. In some German logistics locations, it is not the lack of available space that is the biggest obstacle to growth - but the availability of employees. No matter how functional a location is, it is of little use to a logistics provider if the workforce would rather work at a "neighboring" location. The attractiveness of an employer's location can no longer be determined by salary alone. Or to put it another way: The workplace or its attractiveness is becoming the final, decisive factor in an applicant's decision for or against an employer.

The result: In times of a shortage of skilled workers, appealing spaces in attractive locations are becoming a company's calling card - and often determine how successful a new logistics location actually is. Good accessibility by public transport or - depending on the location - sufficient parking spaces and proximity to the highway are now among the absolute basic criteria when it comes to employee friendliness.

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The property as a business card
In addition, more and more companies in the logistics sector are now also focusing on modern workplaces for their employees - logistics halls and the associated office space are being supplemented with comfortably designed communal areas or other wellbeing incentives. This is not just about eliminating disruptive or even unhealthy factors that could be caused by a lack of insulation or poor air conditioning in the halls, for example. Optimizing the layout of the property to reduce the distance travelled is now also a basic requirement. It is much more about actively increasing the well-being of employees. For example, a logistics property for Zalando has recently been realized in Italy. Covering around 130,000 square meters, it offers employees not only improved working conditions within the halls - for example, through integrated strip lighting for more daylight during work itself - but also high-quality, modern communal areas furnished in a lounge style and attractive outdoor areas, including a basketball hoop, seating and a climbing wall.

Model inner-city business park
Such concepts have so far mainly been implemented in inner-city business parks. There is an increasing mix of logistics, commerce and leisure - and thus a diverse mix of users, which creates new and very different requirements for the design of the space. For business parks in particular, this does not only apply to office space. The logistics and production halls should also be bright, modern and attractive. Outside the halls, the requirements for modern concepts are also growing - in addition to offering lunch at a food truck or in the local canteen, there are also suitable leisure facilities. A fitness club membership is a must in many companies - it's good if employees can also take advantage of this offer during their lunch break and therefore on site. This also has another advantage: such offers are usually taken up together with colleagues, which is why new employees can make contacts more quickly and settle into the company.

Employees benefit from a diverse neighborhood
In addition to the energy efficiency of the property itself, modern concepts also include the climate-friendly design of the outdoor areas. Whether beehives, nesting holes for native birds or even a flock of sheep: A wide variety of concepts ensure greater biodiversity. The added value for the employees in such properties is obvious: small green oases can be found right outside the hall door. In the meantime, entire properties are even being greened to improve the environmental balance. Of course, it is particularly relevant for logistics companies that are converting their vehicle fleets to e-scooters and similar models to also pursue a sustainable concept on the real estate side. In the future, there will certainly be further innovations in this area - because the logistics industry is also undergoing a generational change and ecological sustainability criteria are becoming increasingly important when choosing an employer, especially for those born from 1990 onwards.

About the author:
Ralf Pyszny is Head of Technical Development Northern Europe at Segro.

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