Timber logistics buildings make environmental, spatial and commercial sense

Logistics real estate has come a long way. Once the quiet workhorse of the built environment, it’s now a major player in commercial investment, driven by e-commerce growth and supply chain resilience. According to Lambert Smith Hampton, logistics now accounts for 33% of UK commercial real estate investment – a far cry from the 13% it represented just five years ago.

With this growth has come a wave of new pressures – especially from institutional investors looking to reduce carbon emissions associated with their portfolio. Sustainability is no longer a value-add; it’s a baseline expectation. As architects, engineers, and developers respond, operational improvements like electrified fleets or LED retrofits are now standard practice.

But the bigger carbon story often sits in the background – quite literally – in the materials we build with.

Embodied carbon: the hidden majority

Across almost 30 logistics schemes we studied with Evolve Engineers, the picture was clear: around 80% of a logistics building’s emissions are locked into its structure and materials. Regulated operational carbon, from heating and lighting, is just 15%.

That makes material choice – not just energy efficiency – a key lever for decarbonising the sector. And while steel remains the default, it’s also one of the most carbon-intensive materials we have. Alternatives like Electric Arc Furnace (EAF) steel offer improvements, but our research suggests they aren’t yet scalable, we have to consider multiple solutions.

That’s where engineered timber enters the conversation. Not as a silver bullet, but as a serious option.

Design-led solutions, not simple substitutes

Timber works best when it’s part of the design conversation from the beginning. In our research, we modelled three structural options on a live logistics scheme. The third – a timber-led redesign tailored around the material’s natural spans and properties – delivered the most significant carbon savings, cutting embodied emissions by up to 80% including sequestration.

Of course, this came with trade-offs. The optimised timber design introduced 55 more columns into the warehouse floorplate, which could limit some racking or machinery layouts. But in return, it created a structure that was not only materially efficient but also significantly lower in carbon.

It’s a balance – and one worth exploring further, especially as both occupiers and investors begin to prioritise net zero and nature-positive development.

Financial viability and leasing demand

There’s a perception that timber is too expensive for logistics. It can be – especially if it’s used to mimic a steel design after the fact. But when timber informs the structure from day one, cost efficiency improves. Our modelling showed that this approach can reduce the frame cost premium to 27%, compared to more than 60% in post rationalised swaps.

Construction timelines and labour needs are also manageable with proper planning. And while transport emissions are often flagged, our data confirmed that even when importing timber from central Europe, it outperforms domestic steel in total carbon terms – mainly due to steel’s reliance on imported raw materials and its high-energy production process.

More than just carbon

We’re also seeing a shift in how occupiers evaluate space. Yes, flexibility still matters – and steel’s long spans support that. But increasingly, tenants are asking deeper questions: How was this built? What’s the wellbeing impact for our teams? Does this support our ESG story?

Timber buildings can offer strong answers. There’s growing evidence linking biophilic materials with wellbeing and productivity. And in a competitive labour market, that might matter just as much as clear spans and uninterrupted racking zones.

A material worth considering

Timber won’t be the right fit for every logistics project. But as we look for meaningful ways to reduce embodied carbon, it deserves to be on the table – not just in pilot projects, but in mainstream feasibility conversations.

This is about offering options. Timber is one of them – and with early collaboration between designers, engineers, and investors, it’s an option that can make environmental, spatial, and commercial sense.