The warehousing and distribution industry is the unsung hero of the machine that is the American economy. While many people understand the role freight carriers play in getting goods from point A to point B and eventually into the hands of consumers, many are unaware of the important role distribution warehouse space plays.
The commercial warehousing industry plays an integral role in the entire American economy. In fact, while many other industries are suffering as a result of economic hardships and a dwindling workforce due to the use of inexpensive foreign labor, commercial warehouses are in the midst of an economic boom.
In fact, the U.S. storage and industrial warehouse space industry is worth an impressive $26 billion. Nearly four billion square feet of warehouse space has been built between 1990 and 2003, while warehouse development, including speculative building, continues to increase.
For example, of the 59 million square feet under construction by the end of the third quarter of 2013, over half — 62% — was being built without signed tenants. Commercial warehouses of at least 100,000 square feet that were built since 1990 have yet to post a quarter of negative absorption, and their total occupied space is more than 200 million square feet above pre-Recession levels. In addition, just last year U.S. markets absorbed a staggering 70.2 million square feet of office space — the highest demand since 2006.
It goes without saying that business is booming.
Distribution warehouse space is essential to not only safely storing goods and products but also for preparing them for transit. It’s common for goods to be packaged and prepped for distribution right on site. Not only does this save time, but it also saves money, which in turn, keeps costs down for all parties involved.
Distribution warehouses continue to remain at the forefront of the rapidly expanding commercial real estate industry.