Big Box Outlook, by Jones Lang LaSalle
Major logistics hubs around the country are well established; however, a new set of markets with growing populations and robust transportation connections are emerging as viable candidates for distributors and investors, says a report by Jones Lang LaSalle.
Other key points in the report include:
- Demand for big-box real estate has continued to act as the driving force for industrial real estate. While Amazon and multichannel retailers have been dominant, demand has been steadily broadening across industries.
- State-of-the-art development has quickly moved past the 32 foot clear height standard and is now at 36 feet as users incorporate “each-picking” technology on multiple mezzanine levels.
- Site selection for big boxes, whether e-commerce or traditional, is a complex optimization problem involving transportation costs, labor, service level requirements, tax incentives and more.
- Access to rail has played a significant role in shaping the national big box market over the past decade. With the steady growth in domestic intermodal volume and continued investment form the railroad companies, access to rail remains an important factor driving the market.
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