Top 5 Markets for Dynamic Warehousing Demand

Many retailers and wholesalers are recognizing the need to expand their warehouse networks, so they can locate products closer to customers, compete with Amazon and establish more competitive omni-channel strategies. This strategic shift in the industry requires that companies expand outside of the largest or most obvious markets to establish new facilities in their expanding warehouse network.

When you consider locations for logistics facilities, you might first think of the cities with the biggest ports or the most warehouse properties and transportation options, like New York, Los Angeles or Chicago. Or, you might think of Louisville and Memphis, where UPS and FedEx have their largest shipping hubs. But there are many other areas around the country that move companies to their customers and provide a number of other advantages. We’re seeing high demand for dynamic warehousing in many of those markets and that may be a small bellwether of where the expansion is occurring.

Dynamic warehousing enables companies to expand their warehouse network without having to  build, buy or staff warehouse space. Instead, they can quickly acquire space from other companies who have unused space in their warehouses in the desired region. They only utilize the space they need and only for as long as they need it. That makes it easier to get established in new locations and affordably expand their warehouse network as required for the dynamic nature of their business.

For more details on the benefits of dynamic (or “pop-up”) warehousing, check out this article.

Of course, dynamic warehousing also benefits the companies that have available space to offer. Rather than looking at the unused space as a cost, they’re able to view it as a revenue-generating asset. And, they can make it available for as long as they choose. If you’re a warehouse manager and you currently have unused space, the high demand for dynamic warehouse space in your region may be a great opportunity for you.

We’re seeing the highest demand in these cities and metros:

#1 Cleveland, OH:

With its award-winning port, superior access to interstate highways and highly ranked distribution infrastructure, the Cleveland Ohio area apparently has a lot of appeal for companies requiring warehouse space in the upper mid-west. Demand for dynamic warehouse space is highest in Cleveland.

#2 Pittsburgh, PA:

Pittsburgh is also at the top of the demand list. Pittsburgh has been hailed as a model 21st century city for its economy and support of jobs and business. It’s the home of the third busiest inland port in the nation and has exceptional access to rail transportation. Companies looking to expand their warehouse network into the parts of the Northeast are looking to set up dynamic warehouse space in Pittsburgh.

#3 Jacksonville, FL:

Many major retailers and suppliers are establishing facilities and seeking dynamic warehouse space in Jacksonville to streamline their supply chains and reduce logistics costs. The region’s strategic location and transportation access allows shippers and retailers to reach a market of more than 60 million consumers within a one-day truck drive.

#4 Dallas, TX:

The Dallas-Fort Worth-Arlington metro area is high on our demand list partly because of its prime location for access to major interstate highways and its air cargo infrastructure. It’s one of the nation’s top-ranked markets for transportation and distribution. Companies are actively seeking dynamic warehouse space in the Dallas area.

#5 Oakland, CA:

Oakland, CA has one of the busiest ports on the west coast and is situated at the intersection of several interstate highways. Across the East Bay region, the cost of industrial real estate continues to climb and vacancy has dropped to ten year lows. Companies paying a premium for warehouse space in the Oakland area can recoup some of the cost by making their unused space available to companies looking for dynamic warehouse space in the Oakland area right now.

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// from Jordan Furdock at Net-Results