Why the changing occupier–owner relationship is based on trust, agility and resilience

In a market defined by rising demand, constrained supply and increasing operational complexity, successful partnerships now depend on deeper engagement, earlier conversations and long-term thinking.

Below, Patrick Dunne, Chief Property and Procurement Officer, Sainsbury’s, shares his perspective on how the occupier–owner relationship is evolving, what genuine partnership looks like in practice, and why collaboration, trust and strategic alignment are more important than ever.

From transactional to long-term strategy

Demand for Grade A industrial and logistics space has remained exceptionally strong, with rental levels reaching some of their highest levels in years. But as Patrick explains, the biggest shift isn’t just market pressure, it’s the way owners and occupiers are responding to it.

“What’s changed most is the depth of the relationship,” Patrick explains. “It used to be about simply finding an available space. Now the conversations start years earlier - planning the right location, the right power capacity, and even the specific automation requirements inside the building.”

Occupiers aren’t just searching for space; they’re co-developing it: “Organisations are thinking 5–10 years ahead, analysing land availability, planning constraints and future operational needs well before leases expire,” Patrick comments.

This long-range thinking is essential in a sector where power availability, automation, sustainability requirements and build-cost inflation can make or break a scheme.

Real estate costs, too, are under greater scrutiny than ever - particularly when small specification changes or grid constraints can have major commercial implications. “Power upgrades, grid capacity and build-cost inflation all influence the viability of a site,” Patrick says. “Owners understand this now. The best ones are planning strategically and working closely with occupiers to get ahead of it.”

Agility and partnership are critical for operational realities

Agility has become a defining factor for logistics and retail occupiers. Seasonal surges such as Christmas, and increasingly Easter, place huge pressure on networks, requiring flexible warehouse space, transport capacity and even temporary port or container storage.

“It’s not a straight line volume for us,” Patrick says. “We rely on partners who can flex with us - people who let us scale capacity for six months or even just a peak season.”

This type of agility is only possible through open communication and regular dialogue; developing a genuine partnership isn’t about signing big contracts - it’s about the relationship behind them.

“Partnerships are tested when pressure comes. The partners who support you in those moments, rather than run for the hills, are the ones you value over the long term.”

Without those partnerships in place, or in the event that they break down, the consequences can be significant. Lack of communication, limited transparency on capacity, or an inability to deliver projects on time can create operational disruption at critical moments.

The solution, Patrick argues, is simple but requires discipline: consistent, structured engagement. “Sometimes we have meetings where there might not much to discuss - but the act of talking matters. It means that when either party needs help, the relationship is already there.”

Future resilience is a shared responsibility

Far from being a secondary consideration, sustainability is woven into every property discussion from the outset. Patrick explains: “We were installing solar panels on warehouse and supermarket roofs two decades ago - now owners are coming to us asking how they can co-invest and accelerate their own carbon strategies, which is exactly how it should be.”

Shared learning between landlords and occupiers is becoming a competitive advantage with both sides benefitting from pooled knowledge, whether that be combined heat and power systems or fleet electrification.

“We often host tours for landlords so they can see technologies we’ve installed in action. And in return, we learn from systems they’ve trialled elsewhere. It shortens everyone’s learning curve.”

Energy resilience is emerging as a central theme. In some instances, a site’s grid capacity can determine whether an occupier stays or leaves.

“You can have the perfect building in the perfect location but if it can’t support future decarbonisation needs, we may have to move on,” Patrick notes.

The lesson for owners is clear: sustainability isn’t a tick-box exercise - it’s a fundamental part of operational viability, asset value and long-term retention.

A future built on trust and collaboration

When it comes to offering advice to owners looking to build stronger partnerships, Patrick is clear: “Make the time to talk. Don’t wait until you need something. Relationships are built in the quiet moments, not the crises.

“You must invest when you don’t need anything. Then, when the moment comes, you have the trust and credibility to ask for support.”

Looking forward, Patrick sees the greatest opportunity in early collaboration, especially around rightsizing, sustainability investment and long-term planning. The sector will only grow more complex, but that complexity creates shared opportunities.

“The foundation of all business is people, and the foundation of people is relationships. And the foundation of relationships is trust,” he says. “If owners and occupiers build that trust, the rest will follow.”

To find out more about how we work with our clients within industrial and logistics, get in touch.