Like every industry, trends in commercial real estate reflect the demands of the market, and if there’s one place where demand has accelerated even more rapidly due to the coronavirus pandemic, it’s e-commerce.
Despite sharp drops in SoFla commercial construction (by as much as 54 percent during the summer months according to estimates based on new permit pulls), warehouses and big commercial builds continue to be on the rise. In Miami-Dade and Broward in particular, growth is strong and developers are accelerating builds to keep pace with a surge in e-commerce demand.
What to Look for in a Warehouse
Prior to the pandemic, more than 3 million square feet of warehouse development was already under construction, and the growth in online sales will push that number even higher. Getting goods to consumers faster and more efficiently means companies must be able to stockpile and transport those items as close to their consumers as possible.
As you consider warehouse investment opportunities, here are some important criteria to keep in mind:
- Location – With any property, there are many variables you can change with construction, but one thing that you can’t change is location. Evaluate your location in terms of transit accessibility, worker availability and labor costs, and facility costs, including taxes, utilities, and rental or leasing rates.
- Warehouse requirements – Consider your business needs in relation to your warehouse needs as you evaluate important factors like the layout and size of your warehouse as well as the ease with which you can facilitate deliveries. How much storage space do you need? What are your future growth plans?
With warehouse development on the rise and no signs of slowing down, investors have an opportunity to strategically reshape their businesses and distribution model. We here at Seacoast Construction can help. Contact us today to schedule a free consultation to discuss your plans.
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