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At historically low vacancy rates, warehouse spaces are generating revenue. What’s happening to cause this 2018 industrial warehouse boon?

The 2018 availability and cost for industrial warehouse space is tight. That’s good news for those who have warehouse space to lease or rent. So, says a December 2017 Journal of Commerce article. According to the Prologis Industrial Business Indicator, third quarter 2017 customer activity was at its highest level since 2014.

In some national locations, Beneficial Cargo Owners (BCOs) are experiencing limited warehouse space availability. With supply for space so high, you can be sure lease/rental fees will continue to increase.

What’s causing such a high demand for warehouse space? One factor is the proliferation of large and small fulfillment centers.There is only so much warehouse space available especially around land constrained seaport locations. With customers demanding quick delivery of goods, fulfillment centers must keep popping up to satisfy their demands.

Investors Buying Industrial Warehouse Space It’s interesting to note that since e-commerce companies set a goal of same-day service for online orders, fulfillment centers are working hard to process those customer buys. Spending on growth again, corporations are pushing shipping orders to new heights. The result is straining the nation’s logistics industry. It’s kind of a good problem to have for the logistics industry, yes?

What are we talking about here with diminishing available warehouse space? Investors are buying it up. They are both foreign and domestic. That could be a good thing for them unless the economy goes south again. Owning warehouses can be a good thing or a risky thing depending on demand for space.

Of course, with rents/leases currently rising, those costs get passed on to consumers buying products. There are pros and cons to getting fast delivery. Wonder how long the current boon will last?

Hold on to your seatbelts. With truck drivers retiring from driving due to some suffering with the new ELD effects and the higher consumer demand for goods, what’s going to happen next? It’s quite the unfolding mystery!

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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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