• Press Release
  • May 31, 2019
  • Czech Republic

Aging Logistics Parks and Changing Demand Can Lead to Future Brownfield Projects

Czech Republic - Based on its experience, Arcadis Czech Republic, a consultancy for built assets, can see that the first logistics parks started to be built about two decades ago. However, the technological solution of these buildings does not have the same life cycle as other conventional or infrastructure projects. At the same time, the trends in logistics keep changing, which leads to changes in demand for infrastructure of warehousing and distribution areas. Moreover, the market is influenced by the transfer of production facilities from the West to the East. All these and other aspects pose a risk in the form of new brownfield projects in the Czech Republic, as it was after the WWII and after the Velvet Revolution.

On the other hand, logistics parks are valuable assets for developers that actively take care of the return of their investments. There are many ways to prolong the life cycle and usability of individual parks, including technical improvements of the area, enlargement of the parks to logistics hubs or changing the purpose of use of these areas. Such further development is understandably closely monitored and influenced by local municipalities. Another aspect which does not pose a good light to the Czech state administrative is a lengthy and sometimes even impossible approval process for further construction and development.

Similar to other construction objects, also logistics parks have their useful life (technical and moral). Arcadis carries out technical due diligence of these buildings, often identifying possible threats leading to a shorter useful life due to negligence and recommending optimising technical solutions leading to a prolonged useful life. It is important for the planned buildings and infrastructure of the parks to be as versatile as possible to possibly enable the re-use of the parks. This will lead to the re-use of the parks with a partial reconstruction that can be more cost-effective and more sustainable than a new construction, based on the experience of Arcadis.

Even though the technical solutions are almost unlimited, and the existing regulatory restrictions create a pressure on the re-use of available areas, similar to the above-mentioned waves of new brownfield projects, the strength of the new wave will also depend on the development of the global economy.​

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