June 26, 2018 As e-commerce continues to experience enormous growth, it is completely reshaping the structure of supply chains all over the world. Considering the impact of e-commerce growth extends well beyond brick-and-mortar space, demands to work with top industrial contractors and find warehouse space are also up.
But, times are changing. In the past, industrial real estate had generally been isolated from high populations and located on the outskirts of town, mostly so goods could be moved without hindering the community. Now, with industrial warehouse space at a premium, commercial real estate is being pushed into places closer to where people live to facilitate faster deliveries.
Some of the biggest growth for new industrial development is happening near high population density areas such as: Southern California, Dallas, Chicago, New Jersey, Atlanta and Philadelphia.
Top Industrial Contractors See Warehouse Location Demands Change
Top industrial contractors aren’t the only ones seeing demands for warehouse space in close proximity to households skyrocket. The National Retail Federation projects that retail sales will continue to grow by about 4 percent in 2018 (a rate that has held fairly steady since the recession). Warehouse designs are also changing. According to a CBRE report, the average new warehouse built in the U.S. between 2012 and 2017 is 143 percent larger and 3.7 feet higher than the last construction peak which was between 2002 and 2007.
CBRE attributes the expanding warehouse size to e-commerce users, those who require extra floor space and ceiling height for storage racks, conveyors and other packing and shipping equipment for more efficient distribution. These warehouses may be the last stop where goods are to be packaged before they reach consumers- considered the “last mile” in the delivery network.
While e-commerce companies are fueling the demands to find top industrial contractors and efficient building designs, they are not the only driver making an impact. Conventional warehouse users and third-party logistics companies also fuel a lot of the leasing activity along with manufacturers, too.
Transform Your Vision Into Reality With KMB
It’s an exciting time for top industrial contractors with warehouse buildings popping up across the nation. But it can also be a scary time for businesses. As e-commerce booms and big plans are being made, any wrong step can be costly. That’s why it’s critical to work with a company, who has proven results like KMB, to deliver the right design and services for your unique needs.
In the dynamic world of e-commerce we know a “one-size-fits-all” approach never works. From mechanical and electrical to structural and plumbing, our full-time staff of top industrial contractors and engineers at KMB use a responsive engineering approach to provide customized solutions for each client. We work seamlessly with our clients to ensure every project is completed to satisfaction.
Contact the KMB industrial engineering experts to start transforming your vision into a reality.