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The Savills Blog

Why European double decker lorries may lead to a change in warehouse design

We are now well-versed in the issues impacting the logistics sector: the availability of labour, a lack of HGV drivers and supply chain bottle necks to name but a few. While a shift from a ‘just in time’ to a ‘just in case’ model will help to mitigate some of these factors, this is likely to mean potential alterations when it comes to warehouse design to help facilitate these changes.

One change in particular is the rise of the Euro dock door. The perfect storm of Brexit, Covid-19, as well as wider economic conditions have led to significant pressure and subsequent disruption to supply chains globally. Occupiers are now more likely to hold excess stock on site, rather than import it when required to avoid delays.

In order to cope we have seen a rise in double decker and European lorries circulating throughout the UK. The benefits of using such vehicles are obvious, allowing for the transportation of a greater amount of stock, plus from a sustainability perspective, it means a fewer number of trips. There is just one small issue: our conventional warehousing with standard dock levelers cannot accommodate these larger HGVs.

The answer to this problem is the installation of double-height dock doors. With as much as 22 million sq ft of speculative development in the pipeline for 2023, it is easy enough to factor this in at design stage. For this reason, developers are now including this feature within speculative base builds meaning that up to 10 per cent of dock doors are now double height.

What’s more, it would still be possible to incorporate standard doors, while providing the framework to allow for Euro dock doors to be fitted at a later stage. This will ultimately futureproof units, ensuring they remain attractive to potential occupiers.

As for the 645 million sq ft of standing stock, there is always the potential to retrofit buildings but this can be costly. Depending on the current design of the existing door, this could cost anywhere between £2,500 to £10,000 per dock. Taking into consideration that a 200,000 sq ft unit has approximately 20 dock doors, it quickly turns into a fairly serious investment.

So is it worth it?

While the answer tends to differ depending on the occupier, our reliance on imports from Europe and our need for greater efficiencies within the UK supply chain makes double height lorries seem like an obvious choice. However, for businesses transporting fragile goods, it is noted that they often result in a greater amount of stock damage compared to their smaller counterparts, so is not necessarily a one-size-fits-all solution.

With this in mind, developers and landlords need to cater to all requirements and seriously consider enabling their buildings to accommodate changing trends. Giving occupiers the ability to use European lorries will not only help to let units to international companies, but it wall also help them to attract a greater rental premium. 

As the old adage goes, when one door closes another one opens – but only if you can fit through it.



Further information

Contact Michaela Chidgey or Will Laing

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