The Opportunity is Clear UK logistics is a property goldmine. With e-commerce booming and urban delivery needs accelerating, Paul Weston of Prologis UK explains why logistics is now one of the fastest-moving sectors in the UK economy - and what entrepreneurs should do to stay ahead.

In a world reshaped by online shopping, disrupted supply chains, and environmental imperatives, one unlikely corner of the property sector is having a moment: logistics. Once a niche space dominated by out-of-town warehouses and long leases, logistics has rapidly emerged as one of the most dynamic and strategic parts of the UK economy.

"The growth of e-commerce, supply chain restructuring and the need for resilient infrastructure have transformed logistics into one of the UK economy's most important sectors," says Paul Weston, UK regional head at Prologis, one of the world's largest developers and owners of logistics real estate.

"Entrepreneurs are recognising that well-located, modern facilities are strategic assets that can deliver strong returns," Weston says. "This is precisely what makes the sector so attractive right now: the opportunity for value creation is clear, and those who can identify and deliver the right type of space are well placed to succeed."

Building a future-proof business
But opportunity, Weston notes, comes with complexity - and for those just entering the sector, long-term thinking is critical. "Be curious and take the long view," he advises. "The real value comes from understanding your customers' needs inside out – and today, data makes that insight more powerful than ever."

For Weston, a key lesson from his own journey is the importance of people. "Build your network early and invest in relationships; many of the people I work with today are contacts I first met decades ago," he says. "Don't be afraid to collaborate, because partnerships can unlock opportunities you can't reach alone."

And in today's climate, sustainability is non-negotiable. "Make sustainability central to everything you do. It isn't an optional extra anymore - it's expected by investors, customers and regulators, and it will increasingly decide who thrives."

From challenge to advantage
With rising development costs, land constraints and a tricky planning landscape, smaller developers are often hit hardest. But Weston believes the fundamentals of smart development remain the same. "Focus on quality over quantity. Secure well-connected sites and create buildings designed to stand the test of time," he says. "Early engagement is crucial – start open conversations with councils and communities from the outset. It can smooth the planning process, reduce risk and build goodwill."

Differentiation, he adds, will separate the winners from the rest. "Smaller developers need to think carefully about differentiation. The strongest projects are those that combine location, efficiency and design quality. Even in a tougher market, businesses will pay a premium for space that supports growth and delivers on sustainability from day one."

Greener, smarter, faster
The modern warehouse is more than a big shed - it's a hub of data, automation, and efficiency. For developers, embracing this shift is essential."Sustainability and technology must go hand in hand," Weston says. "Low-carbon materials, cleaner transport options and smarter, data-driven operations are no longer optional – they are fast becoming the industry standard."

It's also good business. "Modern, sustainable buildings are already attracting a pricing premium because they run more efficiently and appeal to businesses that want to lower costs and meet ESG goals," he adds. "At Prologis UK, we've been net zero in construction since 2005, and the long-term benefits of building green are proven."

The overlooked opportunities
Despite the headlines, Weston sees two underserved corners of the market that could offer outsized returns for those who get them right. "Flexible leasing is one," he says. "As businesses adapt to shifting demand, they increasingly need warehouse space without the restrictions of long contracts."

The other? Last-mile logistics - compact, urban facilities that enable rapid delivery to dense populations. "Facilities close to cities are in growing demand as customers expect faster delivery," Weston notes. "Both markets are complex, with higher barriers to entry, but they offer real opportunities. Entrepreneurs who can provide flexibility or deliver sustainable urban facilities will stand out." "These are not short-term fads – they reflect deeper changes in consumer behaviour and supply chains. For those who get them right, the potential for long-term rewards is substantial."

What the future holds
So where is all of this headed? Weston paints a picture of a sector shaped by innovation, resilience, and sustainability. "In ten years, we'll see a more connected, data-driven and low-carbon property market," he says. "Entrepreneurs should prepare by building flexibility into design, making sure developments can adapt as technology and customer needs evolve."

And the bottom line? "Sustainability must be at the heart of things – buildings that perform well environmentally will hold their value and attract greater demand. Innovation will also play a bigger role, with automation and digital systems transforming operations."

"The lesson from the last decade is that change happens faster than expected," Weston concludes. "The entrepreneurs who succeed will be those who future-proof now, keeping the customer and the climate at the heart of decisions."