Commercial Investment Real Estate May/June 2019 | Page 13

Warehouses in port-adjacent, temperate, well-connected areas are crucial to staying competitive. widespread yet, could become more com- monplace over the next five to 10 years. This potential disruption means newer facilities need to accommodate the needs of these trucks, such as convenient charg- ing stations in or nearby the facility. The proximity to certain ports needs to be kept in mind as well. If the nearest port isn’t deep enough to accommodate large ships bringing in containers, additional costs are required to close that gap to the warehouse. Deepening ports triggers full environmental impact studies — a cost and delay that few can afford to soak up. Balanced with these two needs, as always, are customer demands. The “Amazonization” of shipment has arguably raised expectations, with customers now expecting their orders — regardless of product type — in days, rather than weeks. This pressure emphasizes the need for warehouses to be close to consumers. Warehouses in port-adjacent, temperate, well-connected areas are crucial to staying competitive — and most compa- nies are making these traits must-haves when searching for new locations. Considerations can extend beyond location and physical structures. Labor availability can impact a warehouse’s feasibility as well. If another large user of labor is nearby, not only will comparable employee wages need to be considered but a large concen- tration of people in the area will affect traffic levels — additional considerations when selecting a site. A facility that’s a poor fit for your needs can cost far more than simple inconve- nience during picking and packing. A location near a major water source, for example, can mean high humidity, affecting ventilation requirements and, if not properly planned for, increased condensation on the warehouse floors. Choices like this can be righted but require changes after the fact. It’s more important than ever to be aware of how consumer demands, a poorly chosen location, and other factors can all mean missed opportunities, diminished consumer trust, and sluggish or stagnant growth. Jimmy Glascock is president of JDK at Kenco Group, a Chatta- nooga, Tenn.-based logistics and supply chain management company. Contact him at [email protected]. Did you know? Since its founding in 1988, the CCIM Foundation has awarded more than $2 million in scholarships to thousands of qualifi ed individuals and has provided valuable research to the entire commercial real estate industry. None of this work would be possible without your continued support. Thank you. To learn more about the CCIM Foundation and to donate, please visit www.ccimef.org The CCIM Foundation is a 501(c)(3) nonprofi t organization. Thank you to our 2019 corporate sponsors CIREMAGAZINE.COM May | June 2019 11