Multi-Storey Warehousing

Multi-Storey Warehousing

As the global economy recovers from Covid-19 and the trend for online shopping spirals ever-upward, businesses continue to look at ways to hold more inventory, manage the supply chain, as well as enhance pick efficiency to cope with consumer demands for same day or next day delivery.
As Savills noted in the 2021 UKWA report, research from Prologis indicated that for every extra £1bn spent online, a further 775,000sq ft of warehouse space would be needed to meet the new demand.
With adequate space to build warehouses and distribution centres at an all-time premium, particularly in urban areas, this perfect storm is triggering an increase in the requirement for more localised urban and last-mile logistics facilities that utilise every available square foot.

What is a Multi-Storey Warehouse?

A multi-storey warehouse is a facility that is constructed vertically to offer multiple areas of warehouse space that can be leased independently. The multi-storey facility, much like a multi-storey car park, includes ramps and traditional dock-loading for vehicles, providing goods-in and dispatch on each level.
Multi-Storey warehouses should not be confused for Multi-Tier structures within warehouses such as multi-tier racking or a multi-tier mobile pallet racking system. Multi-tier refers to the use of additional floors or levels within the overall structure of the building, to utilise the height and optimise storage capacity, however they are fully enclosed with a single point of entry.

Multi-Storey Warehouse Operations

With such strain on retailers and logistics providers to deliver to their customers, urban locations are being considered to provide a ‘last mile’ logistics hub which can better meet the growing customer demand. Keeping products closer to customers reduces transport costs and speeds delivery to its final destination.
The challenge is that there is a distinct lack of available land that is both well-located and suitable as a logistics hub. Furthermore, urban land holds a premium and is likely to compete with housing or retail developments. However in many cases, a warehouse – albeit on a smaller footprint but utilising the vertical space – can provide the necessary space for multiple tenants, all vying for an urban logistics base.

Impacts of Multi-Storey Warehouses

By adopting a multi-storey warehousing approach, companies can reap significant benefits through the utilisation of the valuable vertical space; a traditional plot size can now be more than four times its original footprint. Additionally, by sharing transport, infrastructure and utility networks, occupiers can benefit from economies of scale, whilst the most valuable land – closest to demand centres – can support an increased density of operators, reducing emissions by reducing transport miles.

References:
1. Savills-UKWA-A4-8pp-Report-Interactive3.pdf