Developers building mega-warehouses to handle e-commerce volume, CBRE says
Pennsylvania, California, and Texas lead the pack in DCs spanning 1 million square feet or more.
Driven by booming e-commerce sales volumes, developers are building an increasing number of mega-warehouses spanning 1 million square feet and above, with the Philadelphia and eastern Pennsylvania area leading the way, according to a report released today by real estate and logistics services company CBRE Inc.
The massive distribution centers are typically clustered around metro areas that provide a combination of proximity to consumer populations and access to road, rail, and sea transportation channels, David Egan, CBRE's head of industrial and logistics research in the Americas, said in a statement. After Philadelphia and eastern Pennsylvania, most big-box construction between 2010 and 2016 occurred in California's Inland Empire, Dallas/Fort Worth, Atlanta, Chicago, Memphis, Columbus, Cincinnati, Indianapolis, and Phoenix.
From 2010 to 2016, 117 such facilities were built, for a total of 141.2 million square feet. By contrast, 99 facilities were built between 2003 and 2009, according to CBRE. The trend shows no sign of slowing: 29 more facilities are currently under construction, the report said.
The key factor driving the trend is the need to house the sheer density of products flowing through online retail channels. As a result, e-commerce places much larger demands on warehouse space compared with other types of logistics operations. E-commerce users typically need two to three times the amount of warehouse and distribution space that traditional users do, because online fulfillment requires more inventory, labor, and automation, according to the study, "Thanks a million, mega industrial warehouses!"
Resources Mentioned In This Article
- ID Label Introduces Three New Labeling Solutions that Support Flexible Warehouse Inventory Tracking and Management
- Honeywell launches retail e-commerce fulfillment tools
- Otto Motors delivers material handling robot to Toyota
- Rack-supported freezer gives fast-growing bakery room to rise
- Collaborative robots make light work of order picking, grocery shopping
Join the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Developers building mega-warehouses to handle e-commerce volume, CBRE says">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.