Warehousing and You — There’s Never Been a Better Time to Hunt For Great Leasing Opportunities
When someone says “warehouse,” you probably think of a big, empty space indoors. But the industry surrounding the warehousing of items in America is anything but empty. In fact, it’s growing at a virtually unprecedented rate, which many are claiming they could have never seen coming. Even with the growing demand of our society for more space and more usable storage facilities, the growth rate the industry has boasted is downright impressive
Between 1990 and 2003, for example, over 4 billion square feet of industrial warehouse space was constructed to meet America’s burgeoning storage needs. That’s no small number, by any measure — consider that the amount of square footage built was equivalent to several large American cities. Annually, this accounts for roughly $26 billion in development spending.
Much of the demand is due to the prevalence of online shopping. Huge online retailers like Amazon use distribution warehouse spaces like these to serve as distribution points for their shoppers. Since the amount of online shoppers in our country — and indeed the world over — is only due to increase in the near future, it can be assumed that the need for large storage facilities like these will continue to rise. And the industry is ready to meet those demands if it hasn’t positioned itself to do so already. Development of commercial warehousing is on the rise, and there is even a notable increase in speculative building, which is something built totally in anticipation of its future use. Over half of the warehouse space built by the end of 2013, or about 62% (or 59 million square feet) was being constructed without any tenants or commercial leases in place.
Finding a warehouse to rent has never been easier. Developers seem to feel that the demand for warehouse space will not diminish anytime soon, and as such, have taken on something of an “if you build it, they will come” approach. If you’re renting a warehouse, consider that they’re popping up everywhere now, and there’s never been a better time to try and rent distribution warehouse space for your business.