Warehouses Are In Hot Demand Right Now. Here Are 5 Things You Should Know Before You Join The Race For Warehouse Space. Finding the right warehouse for your business isn't rocket science, but there are more variables and emerging solutions than you might think.

Against a backdrop of continuous evolution in the way we work, live and navigate an ever-changing global landscape, demand for warehouse space throughout the country has taken off — particularly over the past several years, but even more so during the Covid-19 pandemic. And it's showing no signs of slowing down. In fact, the vast majority of logisticians in a recent survey from JLL are predicting continued growth in logistics demand over the next three years, which means more warehouse space is needed to support additional logistics services and infrastructure.

What is driving this? To start, a growing number of employees are leaving steady jobs in favor of starting something of their own. The expedition of ecommerce growth has seen more and more people preferring to shop online, with the latest figures suggesting a 43% increase in online sales. There is also a demand for last-mile distribution for product sellers, which refers to the final step of the delivery process of a parcel when it is moved from a distribution hub to the final delivery address.

Related: Uptick In Warehouse Leasing; E-commerce And Third-party Logistics: CBRE Report

To keep up with rising consumer demand for cheap and quick shipping, retailers and wholesalers have spread their warehouse real estate footprints across more areas that are closer to population centers for quicker routing, thus resulting in the continued need for more warehouse space. All of the latter contributing factors drive the demand for warehouse space across the country. If you happen to be part of that demand, here are the top five considerations all businesses should account for when searching for a warehouse space that suits your needs.

1. A strategic location

Where a property sits on a map and what is around it is always likely to be the number one consideration for most companies looking for any type of new space, and warehouses are no different. Advantageous shipping routes for transportation to the warehouse, as well as routes from the warehouse to the customers, can help optimize supply chains while also having an impact on shipping costs. Area amenities such as restaurants, banks, fueling stations and other retail will always create more desirability for warehouse users and their employees. Visibility and access to major thoroughfares will be important for some warehouse users, as it may need to be easy for a company's customers or partners to see its location from the street or within a large industrial development.

Related: The Best Location for Your New Wholesale Distribution Business

2. Choosing the correct climate

Thinking through how products are being stored and at what temperature is crucial when determining which warehouse is most appropriate for your needs. Standard, or "hot" warehouses, do not have climate controls and are perfect for materials and products that can withstand warmer temperatures, especially during summer months and in warmer parts of the country. Suppose a company is looking for non-air-conditioned warehouse space. In that case, it should confirm that the warehouse has air-changing exhaust fans to ensure some level of air ventilation exists throughout the property. Otherwise, the property will feel like a tropical rainforest during warm months without exhaust infrastructure.

For additional temperature mitigation, one suggestion would be to install a fan system from the warehouse ceiling to increase the airflow within the warehouse itself. For companies needing to warehouse products that require colder temperatures, such as electronics or certain food items, there are air-conditioned and cold storage freezer warehouse facilities. These facilities will typically carry higher rent or operating costs, with the increased power usage required to run cooling systems.

3. Establishing the loading and unloading capabilities

Depending on what types and quantities of products are being stored, there might be specific loading and unloading infrastructure and components that a company requires within a potential warehouse location. There are several different kinds of loading doors, but the three primary types that warehouse users and their shipping companies look for are dock high doors, grade level (or "drive-in") doors and ramp doors.

• Dock high loading doors are raised off the ground 48 to 52 inches to allow a standard-sized 18-wheeler container to sit level up against the floor surface of the warehouse for easy loading and unloading.
• Grade level or "drive-in" doors allow users to bring vehicles, forklifts and other equipment directly into the warehouse without having to go up a ramp.
• Ramp doors are loading doors with a ramp leading into them and are best suited for loading and unloading from standard-sized vehicles or pickup trucks.

When in need of dock high loading, companies should look for built-in dock leveler access on one or more of the loading docks they will be using. A dock leveler is a mechanism that acts as a bridge connecting the warehouse loading dock to the vehicle pulling up to it and allows for loading and unloading to and from vehicles that are either lower than the standard dock high level or higher. Levelers can also enable a forklift to drive directly into an 18-wheeler trailer to grab pallets of inventory.

4. Ensuring security and safety

It goes without saying that a company looking for warehouse space should ensure that any property in consideration has the infrastructure in place to protect stored inventory and to promote safety throughout the facility. In a 2021 survey by Crate of 250 warehouse-centric businesses throughout Texas, a lack of adequate building security at their current location was a top complaint, second only to their property's look and feel.

Some key questions decision-makers need to ask of potential warehouse locations up front are: Does the property have controlled access, or can anyone drive into the parking lots and walk into the facility? Is the property under 24/7 surveillance? If so, is it manned security or digital? Is the property OSHA compliant? Is there fire protection or a sprinkler system in place? If so, how old is it? Is the warehouse lighting an LED system? Is there a burglar alarm system? These are just a few of the critical questions worth considering.

Related: This Cargo Tracking Firm Is Expanding Business Into New Geographies Despite Global Downturn

5. What comes in the box?

From the outside, warehouses may all look relatively similar, but in today's world, how they can be occupied on the inside by businesses can vary significantly from location to location. Large warehouse users (around 50,000 square feet) can find wide-open warehouses they can rent long-term between three to ten years and build out, run and operate themselves. These are typically best suited for established businesses with credit and operating history.

Smaller warehouse users (upwards of 10,000 square feet) can find similar setups to the larger users, but there is also a bit more variety available today in terms of space options to consider. Light industrial or "Flex" locations offer warehouse space with a loading dock and maybe a built-in air-conditioned office space inside. Most light industrial complexes will require at least a one-year lease. Some mini-storage facilities might have a light warehouse option, where storage can be combined with some office space creating a type of light warehouse solution.

New forms of warehouse properties, which combine traditional warehouse infrastructure with an amenity-based service layer for multiple companies to use simultaneously, have been popping up over the past several years. These facilities often offer flexible terms — three months or more and the ability to grow or shrink footprints as needed. They also provide access to a variety of loading areas and on-site equipment such as forklifts and pallet jacks, office space and other resources such as a break room and confidence rooms. Target customers of these "serviced warehouse" properties can vary, with some being equipped to handle a specific type of industrial user, like ecommerce or mechanical outfits only.

Others can accommodate startups that are fulfilling their first orders, including mom-and-pop merchants, ecommerce companies that need more sophisticated infrastructure or logistics and freight companies in need of short-term warehouse space to fulfill orders for their clients. They also accommodate enterprise-size companies with excess or "spillover" inventory too great for their current warehouse and need a location that offers flexibility and a resource bundled offering.

Related: How to Start a Wholesale Distribution Business

Unlike apartments or retail centers, industrial properties and warehousing services have not traditionally been consumer-facing. Still, you do not have to be a logistics nerd to appreciate the intricacies of warehousing infrastructure and the emerging solutions serving a growing market of users coast to coast. Choosing a warehouse space that meets your needs isn't as hard as you think it is, as long as you consider these pointers before you commit.