Warehouse Space Supply Struggles to Keep Up with Current Demand

Warehouse Space Supply Struggles to Keep Up with Current Demand

The explosion of e-commerce has brought with it a greater need for speedy last-mile delivery. Accommodating these increase requires far more than adding material handling equipment. A recent report shows that warehouse inventory is “aging,” with supply lagging well behind demand.

The New Realities of the Warehouse Industry

In March 2018 CBRE, the world’s largest commercial real estate services and investment firm, published a report about warehouse modernization in the U.S. According to their findings, 1 billion square feet of new warehouse capacity has been added over the last 10 years, yet it makes up only 11 percent of total warehouse inventory.

In addition, these modern warehouses account for just four percent of total buildings. This is due to new warehouse structures being built approximately three times the size of existing facilities.

In the push to fulfill the needs of today’s business environment, developers are facing a dilemma. Focusing on streamlined last-mile delivery systems requires warehouses located in proximity to large urban centers and densely populated areas. Unfortunately, such land is so limited that it carries a premium price, making it difficult for developers to be profitable.

Finding Solutions

Warehouses may start growing up instead of out. Developers could take their cues from vertical and stack warehousing models used in cosmopolitan cities such as Tokyo and Hong Kong, where population sizes and real estate prices effectively prohibit conventional warehouse buildings.

Material Handling Equipment for Today’s Modern Warehouses

DJ Products offers a full line of battery-powered tugs, movers and pushers for all warehouse applications. Visit our website to learn more about state-of-the-art material handling equipment such as our popular CartCaddyLite. Sales engineers are ready to help you via our convenient online chat feature.