The Collaborative Warehouse: People, Robots and Productivity
Automation is often seen as a threat to human jobs, but in today’s warehouse sector, the reality is quite different. Instead of replacing workers, artificial intelligence (AI) and robotics are enhancing human labor—reducing physical strain, improving safety, increasing accuracy, and even creating new types of roles.
Automation has long been considered an enemy of human labor, or even a replacement. In the warehouse sector today, however, the story looks dramatically different. Rather than replacing people, artificial intelligence (AI) and robotics are emerging as labor multipliers that can reduce physical strain, improve safety, boost accuracy and create new categories of work, rather than taking away human jobs.
This evolution comes at a time when warehouses already face turnover, rising demand and persistent labor shortages. The technology isn’t eliminating jobs; it’s filling gaps and transforming both the workforce and the real estate within which they operate.
Reducing Repetitive and Strain-Heavy Work
Cumulative miles walked across warehouse floors each day has long been a source of both fatigue and inefficiency. Autonomous Mobile Robots (AMRs) are changing that.
Unlike older automated guided vehicles, AMRs adapt to dynamic environments. They shuttle goods across facilities, cutting the distance human workers need to walk. People, meanwhile, still perform higher-complexity tasks such as kitting, packing and solving exceptions[1].
Amazon’s new Vulcan robot is equipped with tactile sensors that allow it to feel and handle objects with human-like precision. It takes on awkward or physically stressful tasks, while human workers manage exceptions, troubleshooting and oversight[2].
The result: increased efficiencies, reduced turnover and a safer workplace. Robots are not displacing people; they are taking the strain so people can stay longer in the job.
Smarter Inventory Accuracy
Counting inventory is one of the most arduous-yet-essential warehouse functions. Manual cycle counts are labor-intensive, error-prone and often a drag on productivity.
AI-enabled robotics are addressing this pain point. UK-based startup Dexory has introduced Count Rackula, a digital twin robot that autonomously scans racks up to 15 meters high and processes massive volumes of data per hour [3].
Instead of tedious manual counts, warehouses gain real-time visibility of inventory, while workers focus on operations management and planning. This reduces shrinkage, improves accuracy and saves time otherwise spent searching for misplaced stock.
Job Impact: Roles Don’t Disappear, They Evolve
Despite fears, the evidence so far suggests warehouse automation has a net neutral or even positive effect on employment.
Workers remain critical for oversight, training, quality control and exception handling.
Many are redeployed into higher-value roles such as robot fleet management, analytics or supply chain optimization.
A 2025 Rockwell Automation survey found that 41% of manufacturers are investing in AI to close labor supply gaps rather than to cut jobs[4].
In short, jobs evolve. Robots take on hazardous, monotonous, or physically grueling work. People step into roles that require judgment, adaptability and problem-solving.
Why Warehouses Are Different
Unlike sectors such as call centers or software coding, where AI has directly displaced large numbers of workers, warehousing follows a different trajectory. Several forces explain this distinction:
Labor Shortages: Based on JobsEQ data, annual turnover in warehouse roles can exceed 30%. Robots are filling the hardest-to-staff positions rather than eliminating jobs.
Demand Growth: E-commerce continues to expand at double-digit rates[5] , pushing labor demand higher even as automation adoption accelerates.
Collaborative Design: Most warehouse robotics are “cobots,” engineered to work with humans rather than replace them[6] (McKinsey, 2024).
Consider Amazon: achieving a one-hour fulfillment and delivery window with 99.9% accuracy would be nearly impossible without humans and robots working in tandem. Technology’s role is supporting a workforce under intense strain and enabling greater efficiency rather than displacing a workforce.
The Real Estate Effect: Warehouses Must Evolve
AI and robotics adoption is impacting labor and reshaping the industrial real estate landscape. Here are some ways industrial property will need to adapt:
Design and specs: Robotics are driving demand for taller clear heights (40+ feet), stronger floors and upgraded power capacity. Connectivity, from WiFi to 5G, is now as critical as loading docks.
Location strategy: Robotics reduce dependence on massive pools of low-cost labor, making urban infill fulfillment centers more viable. However, proximity to skilled labor still matters for robotics oversight.
Tenant demand: Automation-ready Class A facilities are commanding rent premiums. Older Class B/C warehouses risk functional obsolescence unless retrofitted with power, connectivity and flexible layouts.
Valuation:Facilities that are spec’d for automation or can be brought online more quickly are already commanding a premium. Over time, this may shift institutional valuation models away from a simple rent-per-square-foot basis and toward a more functional metric: rent per unit of throughput capacity.
This evolution is not unprecedented. A parallel can be seen in LTL (less-than-truckload) terminals, where capital markets already price assets on a dollar-per-door basis rather than price-per-foot, a direct recognition that value is tied to throughput, not footprint. Warehouses are expected to follow the same trajectory, with robotics driving the transition from static space-based valuation to dynamic productivity-based valuation. Simply put: AI raises the bar for warehouse real estate. Properties need to evolve to remain competitive.
Bottom Line: Smarter Work, Increased Asset Value and Safe Space
In warehouses, AI and robotics are not about replacement, they’re about reinforcement. Workers are more productive and safer, with job roles shifting toward oversight and problem-solving.
Buildings are evolving. The most valuable industrial assets will be those that are automation-ready: taller, stronger, digitally connected and closer to consumers.
The Next Step: Client-Centric GeoAI in E-Commerce
For Newmark, the opportunity is to advise on automation-ready real estate while leading with a client-centric GeoAI e-commerce app that integrates automation, people, property and demand into a single intelligent platform. Such a tool does more than map facilities, it helps clients:
Understand dynamic markets by tracking how consumer spending, fulfillment demand and digital buying patterns shift in real time.
Find the right labor by linking warehouse siting strategies with labor supply analytics, workforce turnover trend and specialized robotics talent pools.
Target the growing e-commerce population by identifying where delivery density, customer proximity and retail logistics converge to create the highest ROI opportunities.
By embedding these insights into a GeoAI-driven platform, Newmark can move beyond static real estate advice to deliver strategic opportunities that align labor, logistics and consumer growth. The future warehouse is not just automation-ready, it is market-intelligent, labor-aware and consumer-connected. With a client-centric, proprietary GeoAI e-commerce app, Newmark has positioned itself at the center of this transformation, turning data into foresight and foresight into client advantage.
[1]Top trends in warehouse automation for 2025. https://www.smithfieldtimes.com/2024/11/08/top-trends-in-warehouse-automation-for-2025/
[3]Dexory Count Rackula: The rise of digital twin warehouse robots. https://www.thetimes.co.uk/article/dexory-count-rackula-warehouse-robots-enterprise-network-zhf786pmc
[4]Ninety-five percent of manufacturers are investing in AI to navigate uncertainty and accelerate smart manufacturing. https://www.rockwellautomation.com/en-mde/company/news/press-releases/Ninety-Five-Percent-of-Manufacturers-Are-Investing-in-AI-to-Navigate-Uncertainty-and-Accelerate-Smart-Manufacturing.html
[5]E-commerce statistics and trends. https://www.census.gov/retail/index.html
[6]The future of warehouse automation. https://www.mckinsey.com/industries/advanced-electronics/our-insights/the-future-of-warehouse-automation
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