Increase in eCommerce Competition Leads to an Unexpected Problem: Lack of Warehouse Space

Warehouse for Sale or Lease

According to CBRE, the rise in eCommerce is driving retailers to lease warehouse space at a record-setting pace. Availability of industrial warehouse space has declined for an amazing 25 consecutive quarters.

As more and more retailers become eCommerce savvy, with a desire to meet consumer expectations with shorter delivery times, they are being driven to store merchandise closer to their customers.  However, having the right products in the right places is easier said than done when the warehousing market is presenting fewer and fewer options.

With less availability comes higher leasing costs. CBRE estimates that developers will build about the same amount of warehouse space as they did last year—approximately 150 million square feet in the markets CBRE tracks. This is less than the 2006 high of 213.5 million square feet but should help with vacancy rates nonetheless.

As a retailer, you might be considering or executing on a plan to have more points of distribution with more, possibly smaller warehouses to get product closer to customers and better fulfill online orders. With this in mind, a well-managed inventory and understanding of trends is more important than ever before.

Let ArcherPoint Retail help you execute on your distribution strategy with end-to-end solutions for your retail business. Contact us today to schedule your free consultation, or sign up for our monthly newsletter to stay on top of retail trends.

 

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