The Warehouse of the Future: The Impact of Automation on Industrial Assets
Name
Nuckel-nuckel-msred-cre-2023-thesis.pdf
Description
Thesis PDF
Size
3.01 MB
Format
Adobe PDF
Checksum (MD5)
4d317c787702003bac83ea20dc1fd5af
Author(s)
Nuckel, Reilly J.
Advisor(s)
Duarte, Fabio
Date Issued
June 2023
Publisher
Massachusetts Institute of Technology
Abstract
The impact of warehouse automation on operational efficiencies is well documented; however, the current and potential future impacts on real estate from a design, spatial, and economic perspective remains to be explored. We undertake a qualitative approach, leveraging data from industrial developers, supply chain operators, and robotic firms to provide context for current trends and uncover insights regarding how the technology will influence these assets in the future. Contrary to what has often been assumed, the rise of automation in warehouses presents both headwinds and tailwinds for the asset class as a whole. Automation in warehouses can increase the value of new warehouse development and offset land supply constraints by more fully utilizing the cube of a building to maximize throughput. Alternatively, solving for density and maximizing throughout could mitigate operators’ needs for space, countering increases in valuation at a macro-level for the asset class.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
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