Property Types
Definition
Retrofitting involves upgrading existing facilities with new technologies or systems to improve efficiency and functionality.
Retrofitting in industrial real estate refers to the systematic upgrading of existing industrial and logistics facilities by integrating modern technologies, energy-efficient systems, and enhanced structural components to optimize operational performance, reduce environmental impact, and extend the building’s functional lifespan. This process encompasses a broad range of interventions, including the replacement of obsolete HVAC units, installation of LED lighting, implementation of smart building management systems, and improvements in insulation or structural reinforcements to comply with evolving regulatory standards. By prioritizing retrofitting over new construction, industrial property owners can realize significant cost savings, accelerate decarbonization efforts, and meet increasing tenant demands for sustainable, efficient work environments. Retrofitting is particularly essential in the context of rising energy costs, stricter environmental regulations, and the growing emphasis on corporate environmental, social, and governance (ESG) commitments within the Central and Eastern European (CEE) logistics market. For B2B decision-makers such as asset managers and investors, retrofitting offers a proactive approach to asset management that enhances property value, reduces operational risks, and supports long-term portfolio resilience in a competitive sector.
Practical Example: IPEC Group
At IPEC Group, retrofitting is integral to the modernization of our existing industrial park portfolio across Slovakia and the broader CEE region. For instance, in one of our flagship logistics hubs, we undertook a comprehensive retrofit project that included upgrading the HVAC systems to energy-efficient models coupled with heat recovery technologies, and replacing conventional lighting with smart LED fixtures controlled via IoT-enabled building management systems. These upgrades resulted in significant reductions in energy consumption and lowered operating costs for tenants, while also aligning the property with stringent EU sustainability directives. This approach exemplifies IPEC’s commitment to sustainable asset management—transforming older assets to meet modern industrial standards and delivering measurable environmental and economic benefits.
Related Terms
Sustainability, Energy Efficiency, Smart Building Systems, Asset Management, Decarbonization