Planning requirements Changes in planning designations are needed for inner city logistics spaces or out of town delivery hubs due to the rise of last mile delivery. Further automation of warehouses will require different planning permissions regarding power and infrastructure. CapEx Increased demand for high-spec space is causing increased development costs across the sector. The demand for space will lead to a repurposing of assets which canbe costly. Technology Investors will be willing to competefor sustainable, tech-enabled space which is ready to be let. Construction Costs are rising due to more sophisticated procurement needs and specialist contractors may be required to fulfil certain requirements like huge loading weights. General construction costs: Inflationary pressures fuelled by materials shortages, high demand and higher energy costs are pushing up the production costs and prices of steel and other materials. Services and infrastructure Remote logistics centres have proved to be challenging and expensive when bringing in essential services such as water and power in addition to rising access issues for HGV’s. Challenges in the sector 16 Real Estate Investment 2022