With the demand for industrial real estate at an all-time high, a trusted 3PL partner can become vital to your business. With the developments of the COVID-19 pandemic and changes in consumer behaviors, the demand for industrial real estate – including warehouse and fulfillment space – remains at an all-time high. A result of strong consumer spending and double-digit growth in eCommerce sales has industrial real estate vacancy at an all-time low of <3% nationwide (source) while asking rents continue to rise. This storm has called for swift action when a purchasing or leasing space becomes available to meet demand. Partnering with a trusted 3PL can help you navigate these waters, even when demand is high. Allowing for scalable options no matter your supply chain needs; i.e. adding more space to handle additional safety stock in your supply chain or executing eCommerce fulfillment needs based on expertise. In today’s environment, many companies don’t have the luxury, expertise, or resources to find and secure space needed to keep products moving out the door.
Consulting a 3PL
Looking at real estate in any capacity can be a full-time job, but this is especially true in the industrial real estate market. To secure space, companies must be ready to make snap decisions or they risk losing out to competitors. Adding more complexity, this becomes a greater challenge if you are looking to secure space in a new market outside state lines; ensuring you are in adherence to state regulations.
Experiences 3PLs are constantly on the pulse of industrial real estate opportunities. Most 3PLs like WSI have long-standing relationships with commercial brokers and landlords who represent facilities across the country, offering advantages in finding and securing space prior to those buildings hitting the ‘open’ market.
Scalable Warehouse Options
Flexible, scalable warehouse solutions are necessary to adapt when your operation begins to quickly outgrow its existing model. With eCommerce demand and competition in the space increasing, many companies will not need an exorbitant amount of warehouse space to support growth. Finding smaller, accessible space is no easy task, which is why partnering with a 3PL can be the best of both worlds.
Many 3PLs offer the most efficient solution for growth-minded companies, public warehousing, or shared space. For example, WSI operates a collective 15 million square feet of space across the U.S. A growing portion of our network is focused on the specific needs of eCommerce shippers or companies who are experiencing rapid growth and need support and guidance to effectively scale their businesses. WSI’s public facilities allow customers to grow and scale based on their business needs. WSI’s network also includes dedicated customer facilities, where the entire facility and operation is dedicated to that customer’s needs.
Understanding Your Supply Chain Needs
WSI can help you identify gaps in your supply chain and logistic operations, collaboratively developing a holistic solution to become more efficient, lower costs, and deliver a faster and more reliable solution to your customers. If those findings include the need for additional storage space, we have you covered. If it’s a chance to optimize your current operation or begin to plan a new facility, we have logistician engineers in-house to design and tailor those plans for your needs.
As low vacancy rates and rising industrial rents increase competition for industrial real estate, fast-growing companies may not have the time, resources, or capital to find and secure space on their own quickly. WSI offers support through its expertise, expansive network, and flexible warehousing solutions.