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How to Find Warehouse Space When Demand is High

Posted by Greg Boring

3PLs Can Help Customers Locate the Warehouse Space Their Businesses Need

With store aisles continuing to show empty shelves and the phrase "out of stock" becoming common for online shoppers, 2020 has seen the concept of supply and demand on display like never before. While securing paper towels is a priority for many consumers,shippers and the logistics industry are more concerned with the availability of a different commodity industrial real estate.

Despite the COVID-19 pandemic-induced economic downturn, the demand for industrial real estate including warehouse and fulfillment space remains high due to strong consumer spending propelled by double-digit growth in eCommerce sales. Shippers are dealing with low vacancy rates and record-high asking rents, calling for swift action when purchasing or leasing space to meet demand. Whether you need more space to handle your business's growing demands or to store more safety stock in your supply chain, most organizations don't have the necessary time, expertise, or resources to find and secure the space needed to keep their products flowing. A trusted 3PL partner can help, even when demand is high.


A trusted 3PL partner can help, even when demand is high.


Understanding your pain points

Before contacting a 3PL to help find warehouse space, you should have a clear understanding of what pain points you are trying to address. Are you losing business because you can't deliver products to customers quickly enough? Are you unsure of how much inventory to have on hand? Is your operation outgrowing its existing space? If you can't identify pain points, you may find yourself trying to fix a symptom of the problem instead of the problem itself.

A 3PL like Kenco can help identify the root cause of your challenges and collaboratively develop a holistic solution. If that solution includes the need for additional storage space, we have an in-house real estate department dedicated to finding facilities to address our customer’s needs, as well as logistics engineers who design tailored facility layouts to optimize your operation once in that new space.

Leveraging 3PL professional networks

Searching for real estate in any capacity can be a full-time job but is especially difficult in the ultra-competitive industrial market. Companies must be ready to make quick decisions when it comes time to secure space, or they risk losing out to a competitor. This process becomes increasingly difficult when crossing state lines into new territories with new regulations.

3PL providers with expertise in warehousing are constantly vetting industrial real estate space for their customers. These providers often have long standing relationships with the commercial brokers and landlords who represent these facilities across the country, offering a significant advantage to companies that choose to work with a 3PL partner, rather than managing the search for space on their own. Kenco's built-in network of professionals across major U.S markets has the expertise and relationships that only come from operating within these locations year over year.

Exploring flexible warehouse options

When your operation begins to quickly outgrow its existing model, flexible, scalable solutions are necessary to adapt without incurring exorbitant costs. As eCommerce demand and competition increase, many businesses will not need massive warehouse space to support growth. Finding smaller, niche spaces is no easy feat, and companies can rapidly burn through resources on real estate costs associated with the process.

Many 3PLs offer the most efficient solution for these emerging businesses –multi-client facilities, or shared space. For example, Kenco operates a collective 30 million square feet of space across North America. A growing portion of that network is focused on the specific needs of eCommerce shippers or companies who are experiencing rapid growth and need support and guidance to effectively expand their businesses. Kenco's multi-client facilities allow our customers to grow under the same roof as their business needs dictate. Our network also includes facilities dedicated to specific customers who will have available space at certain times. This existing infrastructure deepens the possibilities of a shared-space model and provides businesses the option to add additional space as they grow

As rising industrial rents and plunging vacancy rates increase competition for industrial real estate, fast-growing companies may not have the time or resources to find and secure space on their own as quickly as their businesses require. Kenco offers specialized support through its industrial expertise, deep network of professionals, and flexible warehousing solutions, allowing shippers to grow as quickly as their businesses demands.


Interested in speaking with one of our industrial real estate professionals?





Greg Boring

Written by Greg Boring

As the Vice President of Sales at Kenco Logistic Services, Greg is responsible for partnering with new and existing customers to develop consultative solutions to improve the efficiency and profitability of their supply chains and transform them from a cost of doing business to a competitive advantage.


We'd like to hear about your supply chain and discuss ways Kenco can help address your business needs.

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Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management, and information technology—all engineered for Operational Excellence. 

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