Mikkel
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Recently, I have been calling numerous public warehousing companies who would be willing to store some biotech products on the East Coast of the United States. Originally I started reaching out to 5 public warehouses that spanned three different states. Aside from the fact that I learned many of these warehouses did not meet the standards that are required for biotech products, I also learned that all of their warehouses were either full or nearly full capacity.
Due to the strict standards my company is looking for, GMP and FDA-compliant warehousing, I reached out to a company that has developed a network of trusted warehouses. I was shocked to learn that no public warehouses, within their large network, could meet my needs within the Northeast. So I decided to expand my search to the ENTIRE United States.
The number of companies willing to work with me:
ONE, in Texas.
Really? I'm sure part of this to blame is that this network does not include every single warehouse in the USA or maybe that I am too new of a company to want to do business with, which I can understand.
Though I can't help but think another reason is the lack of warehousing space. I found this article:
'Unprecedented' – vacant US warehouse space near zero and rents soaring
For those who do not wish to read the article, here is a quick summary:
On the flip side, I recently read an article saying Amazon is looking to scrap plans for dozens of warehouses due to slowing sales growth. Could this be a leading indicator that warehouse vacancy will increase as inflation rises and the economy falters?
What are you guys seeing out there? Any predictions?
Due to the strict standards my company is looking for, GMP and FDA-compliant warehousing, I reached out to a company that has developed a network of trusted warehouses. I was shocked to learn that no public warehouses, within their large network, could meet my needs within the Northeast. So I decided to expand my search to the ENTIRE United States.
The number of companies willing to work with me:
ONE, in Texas.
Really? I'm sure part of this to blame is that this network does not include every single warehouse in the USA or maybe that I am too new of a company to want to do business with, which I can understand.
Though I can't help but think another reason is the lack of warehousing space. I found this article:
'Unprecedented' – vacant US warehouse space near zero and rents soaring
For those who do not wish to read the article, here is a quick summary:
- Warehouse vacancies in the US are LESS THAN 4%
- The cost of building a warehouse is 21% HIGHER than a year ago
- 25% of industrial buildings are more than 50 years old
- 75% of the existing supply was built OVER 20 years ago
- The average age of industrial buildings is 42 years old
- Older logistics facilties have lower ceilings, fewer dock doors, etc. which is not suitable for e-commerce
- Industrial rents have risen by 37% over the past 5 years
- Forecast Estimates: US Rents to increase by 22% overall with coastal markets seeing 25-26%
On the flip side, I recently read an article saying Amazon is looking to scrap plans for dozens of warehouses due to slowing sales growth. Could this be a leading indicator that warehouse vacancy will increase as inflation rises and the economy falters?
What are you guys seeing out there? Any predictions?
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