As delegates left ShedS 2008 after two days of intensive networking and presentations by industry leaders, they had a clearer idea of where the industry now stands and what the likely prospects are moving forward.
They have examined where demand is coming from, what clients want and the prospects for investment and development. Discussions have examined how weaker capital values and the disappearance of ‘yield compression’ have led to a greater dependence on rental growth – a dependence many speakers believe cannot continue. There was also mixed opinion on the future of REITs, and whether they might become targets for takeovers.
One thing that is no longer in doubt for anyone attending this year’s event is the impact of climate change on the logistics sector, with transport issues a key concern and most speakers making at least some reference to the issue.
The launch of Gazeley’s 2008 Sustainability Report at Celtic Manor underlined the subject’s growing importance. The report sets key environmental goals as a new industry benchmark for sustainable logistics space. The company pledged to meet advanced sustainability measures by 2010 that would see 35% of all developments carbon-positive, with an equal overall percentage reduction in carbon emissions. The measures also cover the re-use or re-cycling of waste, water conservation, biodiversity & habitat and minimising the use of polluting materials.
According to Pat McGillycuddy, Gazeley CEO: “Since the 1980s we recognised that our industry had an obligation to tackle the issue of sustainable development……. By embracing new technologies and driving innovation with our Virtual Team experts, we are able to go one step further and create carbon-positive developments.” Gazeley was recently selected to develop the £50m carbon-positive Chatterley Valley business and logistics park in North Staffordshire. This will be one of the world’s greenest such developments, including a bio-fuel micro power station.
Day two got off to a cracking start with a wide-ranging conversation about the prospects for the sheds sector between Giles Barrie and SEGRO chief executive Ian Coull.
Mr Coull was at the forefront of the out-of-town retail revolution during his time on the occupier side of the business, latterly with Sainsbury’s, and his move to property investment and development company, SEGRO (then Slough Estates) was not without its surprises. “I was staggered by how little the property industry cared about its customers – we didn’t have customers, we had ‘bloody tenants’! “ he said. “However, it is part of an industry-wide awakening that we now realize that customer care and satisfaction play a big part in what we do.”
He argued that the turmoil in REIT share prices over the past 12 months was down to the position in the economic cycle and that their poor performance should not be blamed on REIT status itself. Looking ahead he thought the current conditions were different to earlier upheavals in the market and it was therefore unclear when things would settle down. “While a finger in the air forecast might predict that repricing will see a 15% or 25% drop, my gut feeling is that prices will continue to fall to mid 2008 and then turn around,” he said.
Delegates in need of a lift were well catered for when one of the UK’s greatest ever 400m athletes, Derek Redmond, gave an inspirational speech on success. Derek is widely remembered for the semi-finals of the 1992 Olympic Games in Barcelona where he hobbled the last 250m after suffering a serious hamstring injury mid-race. The footage has become one of the most enduring sporting images of recent years.
In his talk, he provided a unique insight into what it takes to persevere, overcome obstacles and succeed as an individual and as a team. Set against the background of current market conditions, many at ShedS 2008 found his message particularly applicable.
Rounding off the second day, in an innovation for ShedS, was the 'ShedS pecha kucha'. Billed as the only known cure to ‘death by powerpoint’, it proved to be an exciting networking opportunity, with several hosts each running short, sharp discussions against the clock. Each speaker presented to the Sheds audience in the pecha kucha format - 15 slides, 20 seconds a slide, five minutes total. This proved a great opportunity to get engaging ideas across to an influential audience, with the winning presentation given by Guy Battle, chairman at consultancy, decarbon8.
ShedS 09 will take place on 4th-5th February 2009.
