Looking for new warehousing and distribution space? It might seem like you’re out of luck.
The traditionally popular areas – Southern California (known as the Inland Empire) and Northern New Jersey – are out of space. Specifically, the overwhelming popularity of these two areas has driven a decline in availability as well as a surge in costs in terms of square footage and workers.
So what’s next? As it turns out, there are plenty of other viable options for warehousing and distribution space. Finding the right location simply requires an insightful evaluation and consideration of new trends.
The Inland Empire and Northern New Jersey have traditionally been popular locations for warehouses because of their proximity to high population areas as well as coastal routes. Plus, a location in each area covers both ends of the country.
But there’s a lot more to choosing an optimal warehouse location than just starting on the coasts.
Start by analyzing these four data points:
If skyrocketing prices for your existing warehouse locations in the Inland Empire and/or Northern New Jersey are giving you second thoughts, what should you do?
The best way to determine if a change is worthwhile is to focus on two key areas:
Throughout this decision-making process, layering in the four data points noted above for location selection is critical to staying well-informed. Further, working with an expert partner who knows the market and your business, like a 3PL, can make all the difference.
Finally, the current spacing dilemma is forcing companies to find new ways to maximize warehouse space, and understanding the impact of these trends can help inform decisions about long-term locations – especially if you’re considering smaller spaces.
Two ways to maximize warehouse space that are already playing out include:
The future of warehousing and distribution will look quite different than what it has in the past. Centers of gravity will shift, as will the number of warehouses companies have and what those spaces look like. But one thing is certain: Plenty of opportunities abound.
Against this backdrop, the key to success is to take the time to understand your options and evaluate potential locations with a long-term mindset, since you can’t just pick up a warehouse and move it on a yearly basis.
For a more detailed look on the changes in warehousing and distribution, plus an overview of six up-and-coming areas for distribution centers, download the full eBook, No Space to Be Found: Where Does Warehousing and Distribution Go From Here?