How Robotics and Automation Are Changing What Businesses Need From Industrial Property

The industrial property market has traditionally been driven by relatively straightforward requirements.

Businesses needed enough floor space.

A good loading door.

Three-phase power.

A yard.

Parking.

Reasonable access to the motorway network.

All of those features still matter.

But the way businesses use industrial buildings is changing.

Automation, robotics, artificial intelligence and increasingly sophisticated warehouse-management systems are allowing businesses to store, manufacture, pick and distribute goods very differently from even a decade ago.

Companies including Ocado Group, Amazon, Siemens and ABB demonstrate just how far automated logistics and manufacturing technology can develop.

But this isn’t only a story about enormous national distribution centres.

Automation is becoming increasingly relevant to SMEs, regional distributors, manufacturers and online retailers too.

For commercial landlords, investors and occupiers across Bury, North Manchester and the wider North West, this raises an important question:

What will businesses expect from the industrial buildings of the future?

Industrial buildings are becoming part of the machinery

Historically, a warehouse was essentially a shell.

The business put its operation inside it.

Increasingly, the building and operation are becoming interconnected.

Automated systems may depend upon:

• Power
• Data connectivity
• Floor quality
• Eaves height
• Building layout
• Fire protection
• Temperature control

That means the specification of the property can directly affect the technology a business is able to install.

Automation isn’t the same as replacing every employee with robots

The word “automation” often creates an image of a completely unmanned warehouse.

That isn’t necessarily what is happening.

For many businesses, automation means using technology to make specific repetitive processes more efficient.

Examples can include:

• Automated picking
• Conveyor systems
• Barcode scanning
• Robotic pallet movement
• Automated packaging
• Stock-management software

Humans continue to play an essential role.

The technology simply changes how the space is organised around them.

Why are businesses investing in automation?

There are several potential reasons.

Businesses may want to:

• Increase productivity
• Process more orders
• Improve stock accuracy
• Reduce repetitive manual tasks
• Extend operating hours
• Make better use of space

For property owners, the important point is that these changes can alter building requirements.

Eaves height could become even more valuable

Warehouse height has already become an important industrial specification.

Automation can make it even more significant.

Traditional warehouse storage may rely on relatively conventional pallet racking.

Automated storage systems can potentially make far greater use of vertical space.

Instead of thinking only about square feet, occupiers increasingly need to think about cubic capacity.

A smaller tall warehouse can sometimes outperform a larger low building

Imagine two warehouses.

Warehouse A

20,000 sq ft with relatively low eaves.

Warehouse B

16,000 sq ft with substantially greater clear height.

For an occupier using sophisticated vertical storage, Warehouse B might potentially provide more useful storage capacity despite having less floor area.

This changes how industrial property should be assessed.

Commercial listings should increasingly highlight height properly

Simply advertising:

20,000 sq ft industrial unit

does not tell a modern warehouse occupier enough.

Useful specifications may include:

• Minimum eaves
• Maximum height
• Obstructions
• Mezzanine areas

As technology becomes more sophisticated, technical property information becomes more valuable.

Floor quality will become increasingly important

Humans and forklifts can tolerate some imperfections.

Automated equipment may be less forgiving.

Certain robotic systems depend upon predictable surfaces.

Industrial occupiers may therefore pay increasing attention to:

• Floor flatness
• Condition
• Loading capacity

An ageing warehouse floor that was previously acceptable may become a barrier to advanced automation.

Floors are becoming operational infrastructure

For traditional storage, the floor holds stock and supports forklifts.

In an automated warehouse, the floor may effectively become part of the transport system.

That could make floor specification increasingly important during both development and refurbishment.

Power demand is likely to increase

Industrial buildings are becoming more electrified.

Power may be required for:

• Robotics
• Conveyor systems
• Machinery
• Servers
• EV charging
• Heating and cooling

A large warehouse with inadequate electrical capacity could therefore become increasingly difficult for certain occupiers.

Three-phase power may no longer tell the whole story

A listing saying “three-phase electricity” is useful.

But sophisticated occupiers may want to know:

How much capacity is actually available?

There is a major difference between simply having a three-phase supply and having sufficient capacity for an energy-intensive operation.

Power availability could influence rental demand

Two otherwise similar industrial buildings could have very different occupational appeal if one can accommodate significant electrical demand and the other cannot.

This means electrical infrastructure may increasingly influence:

• Letting speed
• Tenant profile
• Capital expenditure
• Investment value

Landlords should understand their site’s electrical infrastructure

Investors do not need to become electrical engineers.

But owners of industrial property should increasingly understand the basics.

Questions may include:

• What supply enters the site?
• How is it distributed?
• Is capacity constrained?
• Can additional capacity be obtained?

Specialist advice should be obtained where required.

Solar generation may become increasingly relevant

Industrial buildings often have large roof areas.

For suitable properties, rooftop solar may help businesses generate part of their electricity requirement on site.

As industrial operations become more electrified, the relationship between:

building + energy + operations

could become increasingly important.

Battery storage could form part of future industrial estates

Battery technology may also play a greater role in how commercial sites manage energy.

Potential applications include:

• Storing solar generation
• Managing peak demand
• Supporting resilience

The commercial and technical viability will vary significantly between properties.

Data connectivity becomes operationally critical

A modern warehouse may depend on digital systems for:

• Stock management
• Orders
• Robotics
• Security
• Communication

Poor connectivity is therefore no longer simply inconvenient.

For some businesses, it can interfere with the operation itself.

The warehouse is becoming a connected environment

Industrial property increasingly contains interconnected systems.

For example:

Customer places order.

Warehouse-management software receives it.

Automated system identifies the product.

Picking process begins.

Dispatch documentation is generated.

Courier system receives the information.

The physical building is now part of a digital supply chain.

Reliable broadband could become as important as traditional utilities

Historically, industrial property marketing concentrated heavily on:

• Electricity
• Gas
• Water

Digital connectivity is increasingly joining that list.

Landlords improving industrial estates should therefore consider whether telecoms infrastructure is suitable for modern occupiers.

Automation could increase demand for better internal layouts

Older industrial buildings often contain:

• Columns
• Level changes
• Irregular extensions
• Awkward corners

Humans can adapt to these layouts.

Automated systems may work better in more predictable environments.

Large unobstructed floorplates can therefore become increasingly attractive.

Clear-span space offers flexibility

An industrial building with fewer internal obstacles gives occupiers more freedom to configure:

• Production lines
• Conveyor systems
• Racking
• Robotics

Flexibility itself has value because technology changes.

The perfect automated layout today may not be perfect in ten years

This creates an important consideration for landlords.

Buildings should ideally accommodate technological change rather than one highly specific system.

Over-specialisation can reduce future flexibility.

Flexible industrial buildings could outperform highly customised ones

A building designed around one tenant’s bespoke operation may work extremely well for that company.

But what happens when the tenant leaves?

Investors should consider whether alterations can be reversed economically.

Tenant alterations will become more sophisticated

Automation can involve substantial installations.

These might include:

• Conveyor systems
• Structural supports
• Electrical infrastructure
• Data cabling
• Equipment foundations

Landlords should ensure appropriate consent procedures are followed.

Licence to Alter documentation becomes important

Where substantial equipment or building alterations are proposed, the landlord should understand:

• What is being installed
• Who owns it
• Whether it affects structure
• What happens at lease expiry

Professional legal and surveying advice may be required.

Reinstatement can become expensive

Removing conventional office partitions may be relatively straightforward.

Removing a major automated production system could be considerably more complicated.

Lease documentation should therefore address reinstatement appropriately.

Automation may change staffing patterns rather than simply reduce staff

A highly automated warehouse may employ fewer people in certain manual roles while requiring more:

• Engineers
• Technicians
• Software specialists
• Maintenance staff

This changes the type of workforce industrial locations need to attract.

Staff facilities still matter

Robotics does not eliminate the need for good working environments.

Businesses still need:

• Offices
• Toilets
• Break areas
• Parking

Indeed, attracting technically skilled employees may increase expectations around workplace quality.

Industrial location could become a recruitment issue

A company investing heavily in advanced manufacturing may need to recruit specialist engineers.

That means property location must work not only for logistics but for people.

Access to Greater Manchester’s wider labour market could therefore become increasingly valuable.

North Manchester is well positioned for modern industrial activity

North Manchester benefits from a long industrial tradition combined with access to the wider Greater Manchester economy.

Locations around Bury, Rochdale, Oldham and surrounding areas can provide access to:

• Established industrial estates
• Skilled labour
• Motorway networks
• Manchester’s wider business ecosystem

The opportunity is to ensure the building stock evolves alongside occupier requirements.

Older industrial property doesn’t automatically become obsolete

This is important.

Automation does not mean every older warehouse needs demolishing.

Many existing properties can potentially be upgraded.

Improvements might include:

• Electrical upgrades
• LED lighting
• Fibre connectivity
• Floor repairs
• Better loading
• Improved security

The viability depends on the individual building.

Refurbishment strategies should anticipate future tenants

A landlord refurbishing an industrial unit today should not only ask:

What did the previous tenant need?

They should ask:

What might the next generation of occupiers expect?

That change in mindset can influence investment decisions.

Loading still matters in an automated world

A sophisticated warehouse is still ultimately moving physical products.

Goods need to enter and leave the building.

That means:

• Roller shutters
• Loading bays
• Yard depth
• HGV circulation

remain fundamental.

Technology cannot compensate for a delivery vehicle that cannot access the building.

Automation could make loading faster

Automated handling systems may reduce the time required to:

• Receive stock
• Sort products
• Prepare dispatches

That can increase throughput.

But higher throughput may also mean more vehicle movements.

Yard design may therefore become more important, not less

If a warehouse can process twice as many orders, it may also need to accommodate more:

• Vans
• HGVs
• Courier vehicles

A building with excellent internal automation but inadequate external circulation could still suffer bottlenecks.

Last-mile delivery is influencing industrial property

Customers increasingly expect faster delivery.

Companies such as DPD UK and Royal Mail operate within logistics networks where sorting efficiency and location both matter.

For businesses serving Greater Manchester, being relatively close to customers can reduce final-mile journey times.

Urban and edge-of-urban industrial locations could therefore remain valuable

Not every warehouse of the future will be an enormous motorway distribution centre.

Smaller facilities close to population centres may support:

• E-commerce
• Parts distribution
• Trade supply
• Local fulfilment

This could support continued demand for well-located industrial property around Greater Manchester.

Robotics may allow smaller warehouses to do more

Automation can potentially increase the amount of stock processed within a given footprint.

That could allow some businesses to remain within smaller buildings for longer.

For landlords, this means a well-specified smaller industrial unit may become increasingly productive.

But automation can also accelerate growth

Greater efficiency can enable a company to process more orders.

More orders can eventually require:

• More stock
• More loading
• More dispatch capacity

Technology does not necessarily eliminate demand for property.

It can change the type of property demanded.

Manufacturing is changing too

Robotics is not solely a warehouse story.

Manufacturers increasingly use automated systems for:

• Assembly
• Welding
• Packaging
• Quality control

Companies such as Rolls-Royce and other major manufacturers demonstrate the increasingly advanced nature of modern production environments.

For commercial property, this can increase the importance of technical building specification.

Advanced manufacturing needs dependable infrastructure

A sophisticated production line cannot simply stop every time a building has an infrastructure problem.

Occupiers may therefore place greater emphasis on:

• Reliable power
• Building maintenance
• Security
• Connectivity

Landlords offering dependable property infrastructure can have an advantage.

Artificial intelligence could further accelerate automation

AI can help businesses analyse:

• Demand
• Stock levels
• Delivery routes
• Equipment performance

Combined with robotics, this may allow industrial operations to become increasingly responsive.

The property needs to support that technology.

Predictive maintenance could change building management

Technology may also help landlords.

Sensors can potentially monitor:

• Equipment
• Energy consumption
• Environmental conditions

Instead of waiting for something to fail, owners may increasingly identify problems earlier.

Smart industrial estates could become more common

Imagine an estate where management can monitor:

• Electricity consumption
• Gate access
• Security systems
• EV chargers
• Lighting

through connected systems.

This could improve both efficiency and tenant service.

Cybersecurity becomes relevant to physical property

As buildings become more connected, digital security becomes increasingly important.

Access control, CCTV and building-management systems can all involve networked technology.

Landlords and occupiers need appropriate specialist advice where these systems become operationally critical.

EV fleets will influence industrial property design

Commercial vehicle fleets are gradually becoming more electrified.

Warehouses may therefore require increasing numbers of charging points.

This raises questions around:

• Power capacity
• Parking layouts
• Charging management

For fleet-based businesses, charging infrastructure could become an important property-selection factor.

Vans sitting overnight create a charging opportunity

Many businesses return vehicles to a depot at the end of the working day.

That creates a natural period for overnight charging.

Industrial estates designed around fleet operations may therefore need to accommodate substantial electrical demand.

Automation could support longer operating hours

Robotic systems can potentially continue operating outside conventional staffing hours.

That may make planning restrictions around operating times more significant.

A technically perfect building can still be unsuitable if the occupier’s intended operating pattern conflicts with planning conditions or neighbouring uses.

Noise remains relevant

Automated machinery can create:

• Mechanical noise
• Vehicle movements
• Ventilation noise

Industrial landlords should therefore consider neighbouring occupiers and residential areas when assessing intensive uses.

Fire strategy may need to evolve

Automated warehouses can create different fire-risk considerations depending on:

• Racking height
• Stored products
• Battery systems
• Machinery

The appropriate fire strategy should be developed by competent professionals for the specific operation.

Official workplace safety information is available from the Health and Safety Executive.

Insurance should be considered before major installations

Expensive machinery and automation can materially change the risk profile of a property.

Landlords and tenants should therefore involve insurers where appropriate before substantial alterations are completed.

Building resilience will become more important

A highly automated business can be extremely productive.

But dependence on technology creates vulnerability to interruption.

A power outage, connectivity failure or damaged piece of infrastructure could stop a significant part of the operation.

Resilience therefore becomes a property consideration.

Backup systems may become more common

Certain occupiers may consider:

• Backup power
• Multiple data connections
• Battery systems

depending on the criticality of their operations.

Again, the building increasingly becomes part of the business’s technology infrastructure.

Developers need to think beyond today’s minimum specification

A new industrial building could remain in use for decades.

Developers should therefore consider how occupier expectations may change over that period.

Future-proofing might involve providing flexibility around:

• Power
• Connectivity
• Floor loading
• Eaves height
• EV charging

Not every building needs every technology installed immediately.

But designing for future upgrades can be valuable.

Investors should distinguish between structural and technological obsolescence

Technology itself can change rapidly.

A robotic system installed today may be outdated within years.

The building, however, may remain valuable for decades if its fundamental specification is flexible.

That is why investors should concentrate on characteristics that support multiple generations of technology.

The most future-proof buildings may be the most adaptable

Rather than predicting exactly what a warehouse will contain in 2040, investors can focus on flexibility.

A strong industrial building might offer:

• Good height
• Strong floors
• Generous power
• Reliable connectivity
• Good loading
• Flexible layout
• Adequate yard

Those fundamentals allow different occupiers to adapt the property.

Industrial marketing will become more technical

Future property listings may increasingly include detailed specifications that were once rarely mentioned.

Instead of simply:

Warehouse – 25,000 sq ft

occupiers may expect information about:

• Eaves
• Floor loading
• Electrical capacity
• Connectivity
• Loading dimensions
• EV infrastructure

Commercial agents need to understand these requirements.

Data could become part of property due diligence

Sophisticated occupiers may increasingly analyse operational information before committing to premises.

For example:

• Power availability
• Connectivity
• Travel times
• Workforce accessibility

Commercial property decisions may therefore become more data-driven.

Automation won’t make location irrelevant

There is sometimes an assumption that technology reduces the importance of geography.

Physical goods still need moving.

Employees still need travelling.

Customers still need serving.

A robotic warehouse in the wrong location remains in the wrong location.

Motorway connectivity will remain important

For North Manchester industrial property, access to major routes will continue to influence demand.

Automation may speed up what happens inside the warehouse.

It cannot eliminate the journey between the warehouse and customer.

Property investors should watch occupiers, not just technology companies

You don’t need to predict which robot manufacturer will dominate the market.

Instead, watch what ordinary businesses are doing.

Are local distributors installing conveyors?

Are manufacturers increasing power requirements?

Are e-commerce businesses seeking taller units?

Those changes provide practical evidence about where demand is moving.

SMEs could be the next major automation market

Large corporations were naturally early adopters because sophisticated systems historically required substantial investment.

As technology becomes more accessible, smaller companies may increasingly adopt:

• Automated packing
• Robotic handling
• Smart inventory systems

That could gradually change requirements across ordinary industrial estates.

Commercial landlords should talk to their tenants

One of the easiest ways to understand future demand is simply to ask existing occupiers.

Questions could include:

• Are you installing new machinery?
• Do you expect power demand to increase?
• Are you changing your storage systems?
• Do you need more space?

Tenant conversations can reveal where the market is heading before it becomes obvious in published statistics.

The future industrial unit may be judged on productivity per square foot

Historically, occupiers often compared properties mainly by rent per square foot.

Increasingly, sophisticated businesses may consider:

How much output can this building support?

A more expensive building that enables dramatically greater productivity can potentially represent better value.

Property specification can therefore become a competitive advantage

Consider two units at similar rents.

One offers:

• Poor power
• Low height
• Weak connectivity
• Awkward loading

The other offers:

• Strong infrastructure
• Good height
• Fibre
• Efficient loading

The second property may support a fundamentally more productive business.

Landlords don’t need to turn every warehouse into a technology centre

There is an important balance.

Many occupiers still require straightforward, affordable industrial space.

A local contractor may simply want:

• Secure warehouse
• Yard
• Power
• Parking

Over-specifying every property could make rents unnecessarily expensive.

The market will continue to require different types of buildings.

Understand the target occupier

The appropriate specification depends on who the property is designed for.

A 1,000 sq ft workshop serving a local trade business has very different requirements from a 100,000 sq ft automated fulfilment centre.

Future-proofing should be proportionate.

North Manchester’s industrial stock has an opportunity to evolve

Bury and surrounding areas contain a broad mixture of:

• Older industrial buildings
• Business parks
• Warehouses
• Workshops

Not every building needs replacing.

Strategic refurbishment can help established property remain competitive as occupier requirements change.

Citrus Commercial Circle’s market insight

At Citrus Commercial Circle, we believe the future of industrial property will increasingly be shaped by one simple question:

How productive can a business be inside this building?

Square footage will always matter.

But businesses are becoming more sophisticated about how that space performs.

Height matters.

Power matters.

Connectivity matters.

Floor quality matters.

Loading matters.

And increasingly, the ability to accommodate automation matters.

This doesn’t mean every warehouse across North Manchester will suddenly be filled with robots.

It means the direction of travel is towards more technology-intensive industrial operations.

Commercial landlords and investors who understand that shift can make better decisions when acquiring, refurbishing and developing industrial property.

Final thoughts

Robotics and automation are unlikely to eliminate the need for industrial property.

They are more likely to change what good industrial property looks like.

The warehouses and manufacturing buildings of the future may need greater attention to:

• Eaves height
• Floor specification
• Electrical capacity
• Digital connectivity
• Loading
• Yard design
• EV infrastructure
• Adaptability

The strongest properties will not necessarily be those containing the most technology today.

They may be the buildings capable of accommodating whatever technology businesses need tomorrow.

For investors, developers and landlords, that makes flexibility one of the most valuable specifications of all.

At Citrus Commercial Circle, we help businesses, landlords and investors across Bury and North Manchester understand commercial property requirements, market industrial premises and identify opportunities within a changing commercial landscape.

Based in Bury. Active across North Manchester. Always on your side.

Call us today: 0161 383 1806

Email: info@citruscommercialcircle.co.uk

Visit: citruscommercialcircle.co.uk

Let’s unlock the full potential together.

Citrus Commercial Circle – Where standards meet success.