JLL simplifies your industrial site selection process
Securing well-located industrial real estate is critical to remaining competitive in today’s landscape
Whether upsizing, downsizing, switching locations, or rethinking existing ones, you may be wondering if it’s time to reexamine your industrial leasing strategy.
Securing well-located industrial real estate is critical to remaining competitive in today’s landscape. How you locate your optimal site, find the right building, or optimize your distribution network is changing as consumer demands redefine supply chain management strategies.
Demand for industrial space is high, and supply is tight. As a result, vacancy rates in the second half of 2022 were as low as 3.3%, according to JLL’s United States Industrial Outlook. In contrast, development figures were still in line with demand— ground broke on about 630 million square feet of industrial projects in the third quarter of 2022.
The historically low vacancy rate has contributed to lofty rents of $8.45 per square foot in late 2022, marking a 25% year-over-year increase and leading to sticker shock for many.
It’s a perfect storm for industrial tenants as transportation costs soar and skilled labor is tougher to find—there are twice as many job openings as available workers, according to the U.S. Bureau of Labor Statistics.
Because logistics (freight, labor, and inventory) can account for up to 80% of operating expenses, you have a lot to consider—from market conditions, transportation and infrastructure to local government incentives and financial implications—when it comes to the location of your next distribution center or warehouse facility.
JLL's proprietary tools simplify your site selection process by allowing you to tour the market and individual facilities remotely to help you analyze how your ideal facility location will impact delivery costs, how your network should be designed to meet your customer’s needs and what labor force is required to support your growth objectives.
Now more than ever, an agile and resilient supply chain can help you minimize costs and maximize growth. The right warehouse location strategy will help reduce your supply chain costs, increase your speed to market, and boost your bottom line.
From supply chain logistics analysis to site selection to land acquisition and lease negotiation, JLL’s industrial team can help you shine a light on a better way forward—for every part of your business.
Watch the video to see how.