Cleveland warehouse space
A recent analysis by commercial real estate and investment firm CBRE Group, Inc. revealed retail-to-warehouse conversions are soaring, in large part due to the way people shop. Big box stores are becoming less lucrative while e-commerce is booming. As this trend continues, Cleveland 3PL service providers at On Time Delivery & Warehouse urge companies to recognize there is a big difference between companies that solely provide public warehouse space and the extensive services you get with a third-party logistics firm.
The retail-to-warehouse place-trading involves a broad range of projects, including demolition of old malls and remodeling warehouse retail stores into distribution centers. CBRE also found that while demand for warehouse space overshot supply last year by nearly 30 million square feet. Industrial real estate availability fell to its lowest level since 2000, with only 7 percent up for grabs. Retail space, on the other hand, is much more prevalent. However, just because the space is there doesn’t mean it’s primed and move-in ready. Issues have included trouble with rezoning (which requires local government buy-in) and difficulty convincing other stakeholders like co-tenants to go along.
Companies in Cleveland looking to expand or outsource some of their warehousing services must understand that while public warehouse space-only services do offer some benefits, they’re far less than what you get teaming with Cleveland 3PL service providers.
If you’re in the market for Cleveland warehouse space, a bit of insider advice from third-party logistics experts: Start your search early. Lock in the deal as soon as possible.
Recently, The Wall Street Journal reported warehouse space leasing has become increasingly rivalrous as online sales impose evermore unforgiving time crunches on already-squeezed U.S. and Ohio warehouse and distribution centers. Just in the 2018 third quarter, real estate brokerage firm CBREGroup calculated a sharp drop-off in the industrial warehouse vacancies – even though nearly 50 million spare feed of new warehousing capacity hit the market during those three months. The upshot is that as distribution demands rise, Cleveland warehouse space is snapped up almost as fast as it’s built.
On the one hand, this is good news because it’s a signal of a robust economy for consumers. However, that’s only part of the story. Bigger picture, it’s the exponential growth of e-commerce and corresponding shift in infrastructure. To further break it down, shoppers turning to the internet for everything from loaves of bread to love seats, many third-party logistics companies and their warehouses are hurdling toward or hovering at capacity.
Warehousing is critical because client confidence can be bolstered or broken based on satisfaction with the good condition and timely delivery of products. Cleveland warehouse space shortages can lead to supply chain bottlenecks that can ding consumer satisfaction.