Martin Vella, Managing Director at Pexhurst, discusses how the growth of the industrial and logistics sector is being driven by the sustainable retrofit of older warehouses, supported by government incentives.
The industrial and logistics sector is on the up. Much of this can be attributed to adaptive reuse of the existing building stock, upgrading older warehouses to suit new applications while increasing energy efficiency and meeting sustainability goals of developers. This is a trend that has continued in 2025 and will do so beyond this year with the introduction of additional government incentives and funding for energy-efficient retrofits.
With demand for warehouse space growing year on year, and occupier requirements adapting to meet market needs, older industrial buildings present an opportunity to convert spaces into modern distribution centres or logistics hubs. These refurbishments often require accommodating new technologies such as automation systems or electric vehicle charging stations, however still allow for a quicker turnaround than entirely new buildings.
Accreditations such as Building Research Establishment Environmental Assessment Method, (BREEAM) are becoming increasingly prevalent in the industrial and logistics sector, meaning developers are also shifting their focus to the inclusion of sustainable elements. Refurbishment and retrofit offer a significant opportunity to meet higher environmental standards through the likes of solar panels, energy-efficient HVAC systems and green roofs, as well as fitting more energy efficient heating, cooling and lighting systems. Not only do these contribute to improved credentials – such as better EPC ratings – but also reduce operational costs and make properties more easily rentable at a higher price.
Challenges and considerations of retrofitting
In making these spaces more appealing, flexible and functional, retrofitting existing warehouse space also future proofs the buildings and positions properties for long-term success.
Working with older buildings doesn’t come without its challenges, however, and there are additional considerations that may not be present when completing a new build. The most pressing of these is that they may not meet current building codes or environmental standards leading to extra work being required to ensure compliance and to meet modern safety and sustainability regulations.
In some instances, heritage aspects may need retaining for historical or aesthetic reasons. This can be difficult to juggle when the overarching aim is to modernise the building and introduce new technologies – striking this balance and ensuring the infrastructure can support these advancements requires creative solutions and open communication.
It is also not uncommon that a certain level of occupancy needs to be maintained during refurbishment in order to keep sites operational. In this situation, careful consideration must be given to sequencing of construction phases to minimise disruption and ensure the safety of workers and contractors.
Making the most of existing assets
Engaging and collaborating with specialists throughout the duration of the project is the best way to ensure you complete a successful refurbishment, on schedule and budget. It is essential to be fully clued up on the building’s condition by conducting a comprehensive assessment before starting any work. By identifying any potential roadblocks, you can allow for costly and time-consuming upgrades upfront. At this stage you can also ensure readiness of the building for any technological integrations.
Adaptive reuse of warehouses is innately sustainable, making use of existing structures and adapting them for different purposes, however this process also allows us to consider how we can future proof the spaces with eco-conscious inclusions. Whether it be retaining for improved logistics space or pivoting to micro-industrial, co-working space, there are many possibilities within the existing building stock. No matter the purpose, refurbishment and retrofit should be the first resort for sustainable development in the industrial and logistics sector.
