Designing for the long haul.
Overview
In the fast-moving world of industrial property, few things remain static. E-commerce growth, supply chain complexity, automation, climate resilience features and rising land values all continue to reshape the design and function of industrial warehouses (often also referred to as sheds). For industrial experts, like PFI, staying ahead of these changes isn’t about chasing the latest trends, it’s about thoughtful, strategic developments that balance tenant needs, future-proofing their portfolio, and driving long-term investor value.
At the heart of PFI’s approach is a belief that the most valuable warehouses are those that keep delivering, operationally and financially, across multiple decades and market cycles. PFI’s Portfolio Manager, Ewan Cameron, describes the shed development cycle as a careful mix of foresight, practicality and experience: “You’ve got to think about who you’re designing for today, who might occupy the space 20 years from now, and how the property can adapt without needing to be knocked down and rebuilt.”
What makes a shed work?
A well-designed warehouse plays a central role in helping tenants drive logistics efficiency. While sheds needs to work operationally for tenants first, for PFI, effective design starts with flexibility. That means large, regular-shaped footprints that can accommodate the wide range of uses and layouts common in modern storage facilities and distribution centres. Height and load is also a key consideration. As land values increase and as automation technologies become more widespread, tenants are typically looking to go up rather than out. High-stud warehousing maximises the cubic volume of a space, delivering a more efficient use of the footprint. It’s something Cameron says is standard for PFI’s new developments. Access and flow are equally crucial. Wide yards, efficient breezeways or canopies, and separated traffic movement for light and heavy vehicles all contribute to logistics efficiency. “We design sites that allow for smooth and safe movement, efficient access, and multiple loading options and configurations,” says Cameron. A great example is PFI’s development at Bowden Road, Mt Wellington, which was designed from the outset to accommodate large vehicle movements and efficient freight handling. Beyond the warehouse floor, office space and amenities also need to be thoughtfully located with an ability to accommodate flex. “Our developments often include features like office pods at either end of a building, giving us the ability to create one larger tenancy or split it into two or more smaller spaces without major rework,” says Cameron. This kind of flexibility enables the landlord to respond to changing tenant demand over time.
Building for the future
Cameron sees future-proofing as a balancing act of physical design, and smart future thinking. For example, adopting warehouse designs that can be easily split or combined to enable a developer to tailor their tenant offer in different cycles. This could include provisions to install inter-tenancy walls, separate office and amenity areas, or dual-access points to accommodate multi-occupier setups. Structural and services-related considerations also play a part. Concrete slabs that can handle heavier loads, allow for the future introduction of robotics and automated racking systems. Cameron notes that flexibility in servicing is just as important as physical considerations. “Can the sprinkler system support a multi-tenanted layout? Are the emergency exits and escape routes still effective and compliant if the space is split up in the future? These things sound technical, but they’re fundamental to having future options.” Sustainability also plays a growing role. PFI incorporates features like solar power, energy-efficient lighting, rainwater harvesting, EV chargers, and HVAC into new developments. Increasingly the temperature range within the warehouse and the need to reduce environmental impacts, are key factors that are central to PFI’s design processes.
Trade-offs and capital discipline
While the benefits of future-proofing are clear, Cameron takes a considered view on what’s possible. “As developers and landlords, we’re constantly weighing up the ideal build versus what delivers the optimal return.” Construction costs, tenant affordability, and yield expectations all influence decisions. “A high-stud, highly specked, future-proofed warehouse generally costs more to build, so you have to ask: will these features attract additional rental income and long-term value uplift to justify extra spend on things that we may, or may not, need in the future?” Capital availability also plays a role. In softer markets, where development yields are harder to justify, Cameron says that investor appetite may lean more towards core, non-development, assets. That doesn’t mean new developments should be off the table but it does mean they need to be designed and delivered with a clear understanding of return profiles, and with an eye on what market cycles they are being delivered into. PFI’s speculative development on Spedding Road, which is planned to start in early 2026 , is a prime example of balancing these considerations. The 8,500m² warehouse is being built with no anchor tenant in place at the time of writing, but the design allows it to be split into four individual units ranging from c1,800 – c2,500m². Each tenancy will have its own access, office, canopy, parking and service yard, meaning it can flex to meet a range of possible leasing outcomes. Just as important, it will appeal to a much broader range of occupiers.
The value of experience
For PFI, it all comes back to a simple philosophy: enabling tenants’ success, while targeting the delivery of dependable returns to investors. As logistics evolve and industrial tenants demand more from their spaces, smart shed design is increasingly a strategic advantage. At the heart of PFI’s development approach is its industrial experience – knowing what tenants need, understanding where the industrial market is going, and having the discipline and confidence to invest for the long term. This long-term thinking is what continues to position PFI as a leader in New Zealand’s industrial property sector – designing for today while planning for tomorrow.
This article is intended to share insights and perspectives on the New Zealand and international property markets and should not be taken as legal, financial, or investment advice. While we’ve taken care to ensure the information is accurate, every situation is unique and we recommend seeking professional advice before making any investment decisions. PFI accepts no responsibility for any loss or liability arising from reliance on this content.
December 2025
