The Wild West: Welcome to the Great Industrial Warehouse Revolution

Fast-forward 200 years and we are now experiencing a new kind of Industrial Revolution. No, this is not the same type of revolution from decades past, but rather a new one focused on the re-alignment of traditional business processes to modern day technologies and logistical centers.

The Internet and Covid had a tremendous impact on both our lifestyles and the way we do business. Our behavioral patterns have changed and the demand for distribution centers and cold storage facilities have risen like never before.

At the end of 2019, Amazon had leased or owned about 192 million square feet of warehouse, distribution and data center space. Two years later, it reported 387.1 million square feet, more than doubling its footprint.

Akin to the Gold Rush of the 1850’s, real estate investors and developers are purchasing any type of industrial land they can get their hands on. Last mile distribution is the hottest sector of real estate and trading at an incredible pace in 2022. Without question, this category has become the Wild West of Real Estate. Three of the most popular kinds of warehouse facilities include:

1. Dry Warehousing: A Company may want space to store dry goods such as electronics, clothing and other logistical supplies.
2. Cold Storage/Freezer Facility: With the emergence of Companies such as Fresh Direct, Amazon Fresh, Omaha Steaks and others, Cold storage or minus 20 degree operations are stronger than ever.
3. Cross Dock Operations: These are facilities where inbound goods are first received at a dock and sorted according to their final destinations. They are then moved to the other side of the dock via forklift, conveyor belt or other equipment and loaded on outbound vehicles

The ideal facility for a dry or cold storage facility will include the following attributes:

1. Side loading for trucks
2. 48 Foot Under steel ceiling heights
3. A temperature controlled facility
4. Access to major Highways
5. Close proximity to a Port for easy shipping access

We have witnessed investors grab any parcel of land they can find to develop, gain approvals, re-position, fix, flip or lease long-term.

If you are looking to sell industrial, please contact me for further discussions.