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Not only is there insufficient new supply of space, the existing stock is also being taken away. According to the Report on 2014 Area Assessment of Industrial Land in the Territory conducted by the Planning Department,18 42% of the floor spaces in industrial buildings were for logistics / warehouse use. However, the Government’s revitalisation scheme for industrial buildings, which encourages the conversion of such buildings into commercial use, further reduces the space that could be used for logistics operations. From 2010 to 2018, a total of 18 million square feet (8% of total industrial space) were removed from the stock of industrial properties.19As e-commerce is becoming increasingly popular, shopping activities are also moving from offine to online. Faced with these changes, retailers have grown to be less dependent on traditional store fronts and more reliant on warehouses and fulfilment centres. The emergence of the next-day or even same-day delivery model requires logistics facilities to be located closer to customers. Many existing industrial buildings are located in urban areas and thus in a good position to accommodate such logistics activities. Another demand driver of industrial space could be the Government’s initiative on re-industrialisation. Still, to grasp such opportunities, industrial buildings need to be upgraded in order to meet modern needs (Figure 35).Revitalisation of industrial buildings removes potential logistics space18 Planning Department. (2015). Report on 2014 Area Assessments of Industrial Land in the Territory. 19 CBRE Research. (2019). Industrial Revitalisation Scheme 2.0: Optimising Industrial Property Redevelopment in Hong Kong. 50