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US commercial space is higher in port cities. Is your company creatively financing or passing those higher costs on to customers?

Businesses continue to increase commercial space demand especially in port cities. In fact, current statistics report that the fastest growing storage demand continues to be in high-cost port cities and major inland hubs than in secondary markets. Warehouse and distribution center space demands seem like a B movie monster with an insatiable appetite despite accelerating rents in these places.

Commercial Space Hunger – Can it Be Satisfied?

New York-New Jersey and California seaports and inland hubs like Chicago and Dallas appear to be populated with full to the brim warehouse spaces. The rising industrial development demand doesn’t seem to be stopping anytime soon. What’s causing this boon for commercial space near waterways? Cities converging with waterways home to traditional import distribution activities is one reason. Another is very active last-mile e-commerce fulfillment movement.

Why are seaport distribution centers and warehouses so pricey? Supply and demand are one reason. But real estate prices in these locations also raises the cost. It’s convenient for companies to be close to where they can receive their goods. So, as the saying goes, you pay for that convenience.

Of course, the increasing transportation costs also figure into this calculation and increasing drayage costs. The cost of finding qualified truck drivers also affects commercial space rental costs. In fact, unless something changes soon regarding the high turnover rate of truck drivers, the cost of paying for storage may go even higher.

You can’t really blame truck drivers for their turnover rate. Transporting goods to and from warehouses can be a very unfulfilling job. Truckers miss their families, take big risks on the road and don’t get to be home much. There are other reasons the turnover rate for truck drivers continues to be such a challenge for the supply chain industry. But that challenge can’t be solved quickly due to many factors already apparent to those involved with the truck driving profession.

The bottom line is this…seaport, coastal and various waterway storage centers are charging high rates. This situation is not going away soon. It is something that will simply have to be accepted and worked through.

Commercial Warehousing and Distribution Services in Jacksonville, Florida

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Contact Grimes Warehousing Services

Founded in 1972, Grimes Warehousing Services offers customized 3PL warehousing solutions in Jacksonville, FL. We operate multiple commercial warehouses in Jacksonville, FL and can accommodate your product's special needs. Contact Grimes Warehousing today for competitive rates on Jacksonville warehousing services!

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The Grimes Companies currently operates both public and contract warehouses, light manufacturing and packaging operations, and warehouse staffing services from our company headquarters in Jacksonville, Florida. With trucking terminals in Jacksonville and Atlanta, Grimes offers a simplified solution for all of your logistics and supply chain needs.

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