Vacancy rates are at some of the lowest in over a decade, particularly near ports and major commerce centers.
The result has been a steady increase in rents and a corresponding increase in risk for 3PL warehouses wanting to grow by taking on more space.
According to real-estate brokerage firm CBRE, the availability rate for warehouses and distribution centers fell to 9.4% nationwide in the fourth quarter of 2015 – marking the 23rd consecutive quarter that this rate has fallen.
This 6-year run represents the single longest stretch of falling vacancies since CBRE started tracking the metric in 19891. Based on vacancy rates for 2016, this trend has only continued to escalate.
Although many 3PL warehouses are full and operators can see expansion opportunities, available space is limited. Taking on more space requires significant investments, not only for the space, but for what is inside the four walls.
Today, not many 3PL’s can operate open floor space profitably. Investments in racks, lifts, technology, and even warehouse automation are now required to efficiently compete in today’s market.
6 steps to help grow your business:
1. Expand Your Footprint
2. Select the Right Customers
3. Optimize Space Usage
4. Employ Experienced Staff
5. Perfect Your Operations
6. Deploy the Right Technology