E-Commerce Wave Pushes Warehouse Demand

Warehouse demand is increasing as e-commerce becomes an ever more important part of the economy.

The economic recovery and continued improvements in technology have enabled the warehouse sector to grow and emerge from the turbulence of past years, according to the Financial Times. Prologis, the world's largest industrial landlord, has noted that this has caused rental rates to rise after falling by more than 25 percent during the Great Recession.

We're wondering the growth noted by Prologis has been in part a result of the increased diversity of services offered by warehousing companies. As the economy expands beyond brick and mortar stores into a more diverse economy, retailers and consumers are asking for an array of services ranging from custom packaging to same or next-day delivery services.

Prologis, whose clients include Amazon, FedEx, Unilever, and Home Depot reports that vacancies in its buildings greater than 250,000 sq ft stand at only 1 percent while there's not room at those more than 500,000 sq ft.

In the Financial Times article, Prologis also commented on the difficulty of modifying existing warehouse space for the demands of e-commerce. Those of you who know Capacity LLC are aware that this is a development that has occupied many of our waking hours.

We're obsessed with applying cutting-edge technologies and offering the latest services to both our traditional and e-commerce clients. As the economy, thankfully, begins to grow once again, we're excited about working with our clients to expand their businesses.