High flow-through (HFT) real estate is one of the largest segments within the industrial and logistics real estate sector in Europe. HFT properties facilitate the horizontal movement of goods, rather than the vertical long-term storage of goods found in most institutional-quality warehouse properties. HFT properties are designed and located to optimize a distribution network’s flexibility, speed of product movement and ease of small-order handling. Together, these factors reduce delivery time, improve equipment efficiency and allow for better inventory management in order to reduce a company’s underlying logistics cost structure.
Typically, large shipments arrive at an HFT facility, are transferred from one transportation mode to another (e.g., ship-to-truck, train-to-truck, truck-to-truck, truck-to-van), and are back on the road on the same day. There may be some repackaging as large loads from a single source are sorted into smaller loads for delivery to multiple destin