Research - MARCH 20, 2020

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Flexible warehouse space becomes growing niche industrial opportunity 

by Andrea Zander

On-demand, flexible warehouse space offerings are gaining popularity but remain a narrow niche within the industrial real estate sector, according to CBRE. 

The emergence of flexible warehousing is a response to the growing supply chain challenges faced by industrial occupiers, who are up against limited warehouse space options, rising rents, longer-term leases and inventory fluctuation. What’s more, the current economic and geopolitical climate has created supply chain uncertainties, especially for inventory procurement, making it difficult for companies to make long-term distribution decisions.

Third-party logistics providers (3PLs) remain by far the top occupiers of industrial space in the United States, almost doubling e-commerce in terms of deal activity in 2019.

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