CBRE: Urbanization and automation leads a trend of vertical logistic solution

Warehouses formed up in the air

CBRE, the world leader in commercial real estate services, has released a study investigating current trends in logistics real estate sector. Technological development, automation of logistics processes and urbanization leads to a rise of vertical warehouses. The largest multi-storey warehouses are seen mostly in Asia. In the Czech Republic, there is still more interested in large one storey warehouses.

Currently 54% of the world's population and nearly 74% of Europeans lives in cities. There is quite common for people to live and work in high, multi-storey buildings or in skyscrapers. That trend penetrates also into the logistics and there is growing an interest in vertical logistics solutions at a global level. Multi-level stores are popular in East Asian markets, where are in addition to the high population density cities also a lack of land. In Europe, there is not interested in vertical folds so massive and the local market are sophisticated vertical warehouses far more music of the future so far.

Bert Hesselink, Senior Director Industrial & Logistics CBRE
In the local market continues the demand for high-capacity one storey warehouses and distribution centers of XXL format. Currently we are facing a shortage of suitable land within the whole territory of the Czech Republic, mainly around the capital city. Companies are therefore interested in new locations outside of Prague and the Central Bohemian region. An example is the logistics center Mountpark Pilsen with 44,000 square meters of total area, whose construction was completed in the Pilsen region late last year. 
Bert Hesselink, Senior Director Industrial & Logistics CBRE

The technology development and automation of logistical processes are the factors influencing the formation of vertical storages. Logistics companies use automation to optimize and streamline all operations of warehouse and supporting activities. That allows vertical utilization of storage space and storage and handling of goods at areas previously difficult to reach. The optimization is also related to the second reason why companies turn to vertical solutions, and that is finding the balance between labor costs and warehouse operations. You need to set what could be carried cheaper by robots and for what is human labor still needed. That wage growth and a shortage of qualified employees leads to the need for process automation.

Vertical construction solution of warehouses can be in two different forms. The first are the "high-bay" warehouses, including all logistic one storey buildings that exceed the common height of a standard logistics facility. The second option of vertical logistics are "multi-level" stores. Multi-level warehouses consisting of more than one floor, which greatly increases available floor space. Access to goods on the upper floors is possible from outside, via ramps for vehicles, or can be used an internal vertical solution with lifts, conveyor systems or internal ramps.

About CBRE

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at