In Dubai, industrial demand continues to be driven by trade, logistics, and regional distribution. What is changing is how occupiers are using space inside the warehouse.
A small but growing group of occupiers, particularly e-commerce operators, regional distributors, and third-party logistics providers, are redesigning operations around higher levels of automation. In some cases, this is leading to facilities that operate with minimal on-site labour and run continuously, with systems replacing tasks that were previously manual.
These are often described as “dark warehouses”. The term refers to buildings designed around machines rather than people: lighting, ventilation, and welfare space are limited because automated storage, robotics, and conveyor systems handle most of the work. The commercial logic is straightforward. Automation reduces reliance on labour, improves speed and accuracy, and allows operations to run consistently across longer hours without the variability that comes with large workforces.
In the UAE, fully dark warehouses remain uncommon. But many occupiers are already moving in that direction, designing facilities that are partially automated or capable of supporting greater automation over time. As a result, the real estate requirements associated with dark warehouses - power capacity, floor tolerances, clear heights, and structural consistency - are becoming relevant well before the model itself becomes widespread.
What automation changes in the occupier brief
For many occupiers, labour is now a more difficult variable to manage than rent. Scaling headcount, maintaining productivity across shifts, and managing turnover introduce operational friction, particularly for high-volume or time-critical distribution.
Automation offers a way to stabilise operations. It embeds performance into the building itself and reduces exposure to day-to-day variability. That shifts how real estate is assessed from a neutral container for activity to an active part of the operating model.
What this means for buildings
Automated operations demand more than modern specifications on paper.
Power capacity becomes a gating factor. Floor flatness, load tolerances, and clear heights move higher up the decision list. Internal layouts are driven by racking systems, conveyors, and robotics rather than people. Mezzanines and vertical storage replace conventional pick-and-pack formats.
In Dubai, this highlights a practical constraint: a significant share of existing industrial stock - including some relatively recent supply - was not designed with these requirements in mind. That does not make it redundant, but it does narrow the pool of buildings that can support more technical operations without compromise.
Where we’re seeing change
Zones such as Dubai South, JAFZA, Dubai Industrial City, and National Industries Park are where automation-led occupiers are concentrating their searches. The appeal is functional rather than reputational: infrastructure depth, plot flexibility, and the ability to support higher power loads.
Dubai South, in particular, benefits from scale, proximity to Al Maktoum International Airport, and the capacity to accommodate bespoke or semi-bespoke facilities. For occupiers prioritising systemised workflows, those fundamentals often outweigh proximity to the traditional city core.
In more established locations, buildings can still compete, but scrutiny increases once technical requirements are tested. Rent alone is rarely decisive where operational constraints exist.
Retrofitting remains possible but limited
Retrofitting warehouses for automation is viable in some cases, but only where structure, power, and site configuration allow it. In practice, those constraints narrow options quickly.
This is why occupiers with defined automation strategies often favour buildings that offer flexibility from the outset, or landlords willing to adapt assets collaboratively. Developers delivering robust base-build specifications are better placed to respond as requirements evolve.
Standardised warehouse formats remain relevant but are increasingly assessed through the lens of adaptability rather than uniformity.
Leasing behaviour is adjusting
Automation is capital intensive. Once systems are installed, relocation becomes costly. Occupiers committing to this model tend to seek longer lease terms, clearer expansion rights, and closer alignment with landlords on infrastructure and asset management.
This can support income stability, but only where the asset genuinely supports the occupier’s operation over time.
What to watch next
This is not a step-change across the entire industrial market. Labour-led warehouses will continue to dominate much of the sector.
What is changing is the level of scrutiny at the upper end of demand. As automation becomes more common, occupiers are asking more of buildings before committing capital and operational risk.
Over the next few years, that scrutiny is likely to influence how new supply is specified, which assets justify reinvestment, and where leasing friction emerges. The market is not dividing, but expectations are tightening.
For occupiers, the question is not whether to automate, but where automation genuinely improves performance. For developers and landlords, it is whether assets are capable of supporting those decisions - now, and as requirements evolve.
