Performance Improvement in the Private Sector
We partnered with Indurent, an industrial developer and investor, on a consumer-centric review of their strategic development pipeline bringing the occupier’s perspective to investment and development decisions.
The Challenge:
Indurent, a large-scale property developer, wanted to outperform a market in which rising vacancy rates and occupier attraction represented significant headwinds. They wanted to ensure their new developments were successful and outperform the competition. They needed to understand what potential tenants (occupiers) were looking for in order to make their buildings more appealing.
The Solution:
Indurent hired CBRE to analyse their plans and provide recommendations. They took a “consumer-led” approach, meaning they focused on what potential tenants needed and wanted. They investigated eight key sites, using data and analysis to understand the best ways to design and market these developments.
What They Did:
- Market Research: They gathered information on the local area, including labour costs, transportation links, and other factors that would impact potential tenants.
- Location Analysis: They analysed how well each site fit into the supply chains of various businesses. They considered things like proximity to transportation networks and the availability of workers.
- Design Recommendations: Based on their research, they suggested changes to the building designs to better meet the needs of potential tenants. This included things like door placement, parking areas, and amenities for workers.
- Occupier Targeting: They helped Indurent identify specific types of businesses that would be most interested in each location.
Key Findings:
- Improved Design: They identified design changes, like adding “cross-dock” layouts (where goods can be quickly moved from one lorry to another) to improve operations and make the buildings more attractive.
- Cost Savings: They found that locating at a site in Stoke could save a tenant up to £2.2 million annually on labour costs compared to other areas.
- Better Site Selection: Their analysis helped Indurent understand which types of businesses would be best suited for each site.
- Cost Efficiency Improved unit sizes, door sizes and lay outs.
The Results:
Their work allowed Indurent to make more informed decisions about their developments. This led to several improvements:
- Increased Appeal: The changes made the buildings more attractive to potential tenants.
- Reduced Risk: By understanding the market better, Indurent reduced the risk of building properties that wouldn’t be in demand.
- Improved Investment: The changes made Indurent’s investments more likely to succeed.
- Better Design: Improved building design to better meet the demands of potential tenants.
Impact:
The project helped Indurent improve the way they design, market, and develop industrial properties. They understand the value of focusing on the needs of potential tenants, which will help them secure leases and improve the success of their developments. The work provided Indurent with a clear roadmap for improving their performance and staying ahead of the competition.
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