"Bread-and-butter essentials" top the list of distribution and e-commerce occupiers regarding essential building features as demand for space continues despite some economic headwinds, according to a recent report from CBRE.
When selecting a new warehouse, 81% of occupiers identified clear height as one of the most important building features, with the number of loading bays/dock doors (76%) and power supply (56%) also ranking highly.
The U.S. industrial market is continuing to see robust demand, and companies are adding warehouse and distribution space to protect their inventories, diversify their supply chains and process growing e-commerce sales, according to CBRE.
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Sixty-four percent of respondents plan to expand their U.S. logistics footprint; with 47% looking to grow by more than 10%, 29% plan no change and 7% expect to downsize.
The survey from summer 2022 and reflects the responses from a diverse array of industrial occupiers, most of which are engaged in distribution and/or manufacturing activities.
Third-Party Logistics (3PL) providers and companies in the food & beverage and building materials sectors are leading the way with the Southeast, Southwest and Midwest regions most preferred.
Rent Cost a Top Factor; Skilled Labor a Top Challenge
Nearly three-fourths (74%) of respondents cited occupancy cost (rent) as the top factor when selecting a building within a market, followed by lease options (50%), transportation (47%) and building design (45%), according to the report.
Most occupiers are improving wages and the work experience for employees, and automation is gaining traction. However, skilled labor shortages, rent and cost escalations are considered top challenges.
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