Industrial sector will become best performer in commercial property market
“The industrial sector will be the best performer over the next 10 years,” predicted Enda Luddy, Managing Director of CBRE Ireland, when discussing the increasing impact that technology is having on the commercial property world, from drones to autonomous cars, and online retailing to vertical farming.
The success of the industrial sector will be fuelled by four key factors – logistics, data centres, 3D printing and vertical farming.
According to Enda Luddy, the rapid growth in on-line retailing requires a highly sophisticated and joined up logistics network capable of speedy delivery to consumers. Similarly, the expansion of mobile technology and the development of autonomous vehicles will increase the demand for facilities to store data near to users.
The development of 3D printing technology is expected to revolutionise the global manufacturing supply chain. 3D printing has the capability of taking raw materials and producing goods where they are required. “Manufacturing will need to be located nearest to demand – the cities,” he explained.
Enda Luddy expects that vertical farming will change the nature of food production, which in the past has focused on reducing the cost of production. A one acre vertical farm can produce 10-20 times the output of a traditional farm, he pointed out. “In the future, food will be produced to meet our taste requirements and also our dietary requirements,” he said.
Prior to his appointment as Managing Director in 2013, Enda Luddy, a valuation and portfolio management specialist, established CBRE’s Property Management division, oversaw the development of a new Building Consultancy department, providing PM, Building Condition Surveys, Fund Monitoring & Space Planning services and established a specialised Professional Services team handling rent reviews, lease renewals & rating advice across all occupier sectors of the Irish CRE market.
