Key Trends in Logistics Real Estate
Commerce is the lifeblood of any economy, and the logistics system is at the heart of it all. Trucking fleets, railcars, and other logistic systems are the often overlooked infrastructure that makes trade possible. Logistics real estate stands at the center of the ever-shifting system.
Logistics real estate has increasingly become lucrative due to logistics’ centrality in worldwide trade and other underlying trends. Technological advancements and economic factors are changing the way businesses view logistics real estate. Below are three key trends to watch out for in industrial real estate.
1. Businesses are building bigger and better spaces
As businesses continue to grow, they start to look for spaces that can accommodate them. Million square foot facilities were previously looked over and were not a usual thing in the industry.
However, they have become the norm as commerce continues to grow, fueled by the rise of technology. Smaller warehouses might be an exception from e-commerce dealings as they desire many smaller facilities that are nearer to major towns to reduce the number of deliveries.
As long as your business knows what to look for and where to look, you can hire 3PL companies to do the heavy lifting so that you don’t have to make do with any small spaces again.
1. Proximity to ports and docking areas
The nature of logistics transport is shifting along with logistics real estate. If your warehouse isn’t near a deep enough port to bring in large containers, you might have to top up some additional cost to bridge the gap between your warehouse and the closest port.
Customer demands also have to be your company’s top priority. Companies with a quick shipment such as Amazon have raised consumer expectations when it comes to delivery. Customers now expect their products, regardless of type or size, to get to them within days and not weeks as before. This, therefore, necessitates that warehouses be as close to consumers as possible.
Warehouses that are close to ports and well-connected areas are well equipped to surviving in a competitive industry.
1. Technology in response to warehouse layouts
The increasing use of technology has necessitated the automation of almost everything. Technology today plays a significant role in determining how a warehouse looks and what it can do. The amount of power needed for automatic robots and pickers could very easily prove to be too much for an older facility.
Additionally, a desirable warehouse needs good HVAC for employees. The increase in demand in the healthcare, food, and beverage industries has also increased cold chain demands. With the regulations bearing down on the mentioned sectors, monitoring a consistent temperature is vital for ensuring product freshness and quality.
Ready to venture into logistic real estate?
At GLP, we pride ourselves on providing the traditional 3PLs and keeping a real estate team ready to assist our clients. We also watch out for key trends as the ones mentioned above to help you secure the best fit for your warehousing needs.
We will help you locate, secure, and maintain your warehouse of choice. We also have a highly trained and skilled team of real estate agents who will help you with lease agreements and negotiations. Talk to us and let us handle your warehousing needs.
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