When it comes to warehouse storage, it might be time to consider building UP, not just shelling out!
Cushman & Wakefield reported that the quarterly vacancy rate for US industrial real estate was down to 3% as of Q1 2022, with little chance of easing up in the future.
Then, in October, Peter Frerichs of Global Trade Magazine reported: “While some analysts believed the constricted supply of warehouses would abate some, it appears to have worsened.” this has proven to be a costly hurdle for small businesses that rely heavily on rentable warehouse space.
With leaseable space being gobbled up by larger corporations such as Walmart & Target, small businesses have had to get more and more creative – utilizing trailers and parking lots to store additional inventory. Unfortunately, this solution has led to an even larger logistics nightmare. Increased demand and containers still waiting offshore at US ports for unloading have created a container shortage for overland transportation.
But what is the best solution for businesses that need space now? Cooperative partnerships have worked for some businesses – where multiple small businesses partner to purchase or build a shared warehouse space. But there is another alternative available – building UP. Reach trucks, stand-up riders and order pickers have made scaling warehouses easier for businesses that need to maximize the space that they already have.
Adding additional racks has proven an invaluable solution for some businesses that can’t afford to purchase additional real estate to expand their business.
Looks like reaching for the sky has a new meaning, at least in the warehouse & logistics business!