Interview with Henry Pepper, Partner at Bridges Fund Management
Take a look at our interview with Henry Pepper, Partner at Bridges Fund Management. Henry explores the forces shaping today’s industrial and logistics landscape and shares his perspective on the key challenges and opportunities emerging in his area of focus, as well as the major trends set to influence the sector over the year ahead.
Q) What are the biggest challenges or opportunities in your area of focus that attendees should be aware of?
A) One of the biggest challenges we’re navigating is development viability, particularly in a market shaped by rising costs and tighter funding conditions. At the same time, this environment presents a real opportunity to create long-term value by delivering highly sustainable buildings that command stronger rents and yields and are increasingly sought after by both tenants and investors. There is also a significant opportunity to differentiate by creating places that prioritise wellbeing, offering high quality work environments that help attract and retain occupiers in an increasingly competitive market.
Q) Which trends or forces do you think will shape industrial and logistics in the upcoming year?
A) Over the coming year, we think that the defining trend shaping the sector will be occupier demand for best-in-class space. Demand is expected to remain focused on energy efficient, facilities that can deliver a green premium, with 58% of recent take up already concentrated in Grade A space (DTRE). At the same time, new speculative development in 2025 is at its lowest level since 2017, tightening supply - particularly for small and mid-box Grade A units, where vacancy stands at just 1.4% (Newmark). This imbalance creates a significant opportunity for those able to deliver high quality, sustainable space that meets occupiers’ evolving needs.