Saturday, April 27, 2013

Warehouse Space

By Virginia Wall


Logistics Trends and Specific Industries That Will Drive Warehouse Space for Lease

Twin Cities Commercial real estate Landlord JGM Properties, Inc. reveals the logistics trends and specific industries that will drive warehouse space for lease, distribution growth, and demand for warehouse space over the next decade.

(Newswire.net- April 03, 2013) Minneapolis, MN -- JGM Properties, Inc. presents their insights into the latest trends around warehouse space for rent and key market drivers that will further increase the demand for warehouse for lease. In recent years, large industrial users are seeking to relocate to more spacious premises in order to accommodate growth in warehousing, distribution, and production. While accessible location is extremely important when it comes to finding the most suitable warehouse space; distribution and logistics-type operations are tending to seek premises which are clean and modern, have good security, high exposure to passing traffic, and offer large yards and turning circles for trucks. This is particularly so where large trucks and containers are regularly maneuvered in and out of the property.

Consolidation of the logistics firms and ecommerce trends are the key drivers of the bulk warehouse distribution space. There has been a noticeable trend towards an increase in demand from seeking to relocate to where large warehousing space and large yards are available. The growth of e-commerce will also drive further development of so-called dark stores; huge warehouse spaces where goods are packed and shipped to consumers. It is estimated that over the next five years, online outfits will also need an additional thirty million square feet of specially equipped e-fulfillment space. To keep retail stores and satellite warehouses stocked, another 220 million square feet is needed.

Large blocks of contiguous warehouse space in key port markets and super-regional centers are in demand. An increasing trend among large industrial tenants is to look for properties where they can occupy an entire building or buildings, which provides for greater convenience with only one tenant on site but also enhances security. Online shoppers seem to be creating a lot of demand for oversized commercial storage units suitable for logistics and delivery outfits. This explains why in recent years there has been a trend towards an increase in demand for large warehousing space and large yards, including those which can accommodate vehicles with super-link trailers.

A representative of this Minneapolis commercial real estate company says, "the trending need for small warehouse for lease Minneapolis and surrounding areas remain somewhat flat; as many retailers have simply outgrown their supply chain infrastructure and they have to work out new logistics models for multi-channel retail. Over the next five years, around 250 million square feet of warehouse space will be needed to keep up with e-commerce trends." JGM Properties a mid-sized Minnesota commercial real estate Management Company headquartered just outside Minneapolis has released this report citing a summary of likely trends in warehouse for lease along with general MN commercial real estate for rent in 2013. JGM owns and manages office, warehouse, and retail space.




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