How Do You Determine Warehouse Needs?

Commercial warehouse

A unique program in the center of the U.S. is training students in the field of distribution and logistics. In the second largest school district in the state, high school juniors and seniors in Omaha, Nebraska, are preparing themselves for a career in one of the fastest growing fields. Because of its central location, studies show that distribution and logistics management positions are increasing in Nebraska faster than in any other state. Nebraska’s central location makes it an ideal transportation hub for air, rail, truck, and barge services to support manufacturing and to distribute products to rest of the nation.
The distribution and logistics managers and supervisors of this world have challenging tasks. Successfully determining warehouse space needs, as well as other transportation and storage details, are hugely important to all of today’s industries. Whether you work for a company in Nebraska where distribution and logistics is one of the fastest growing fields in the state, or on either of the coasts, understanding how to schedule the delivery of large amounts of product in a timely matter is essential to a company’s success.
The U.S. storage and warehouse leasing industry is worth an estimated $26 billion. Because of these growing numbers, leasing a warehouse is becoming an increasingly competitive goal in many parts of the country. In fact, In 2014, U.S. markets absorbed a total of 70.2 million square feet of office space. This number marks the highest demand since the year 2006. As a result, warehouse development is on the rise, and investors and realtors have seen an increase in speculative building, too. About 62% of the 59 million square feet under construction by the end of the third quarter in 2013 was being constructed without signed tenants.
Determining warehouse space needs requires looking at today’s revenue numbers and forecasting into the next years what a company’s busiest times are and getting early lease options on the most beneficial space. Watching the real estate transactions for commercial real estate development and commercial warehouse space can help logistics engineers predict where future space might be available. In addition, these same logistics and distribution experts might be required to forecast the options for leasing office space in the largest distribution locations.
As the field of logistics and distribution continues to grow, the newest high school students and college graduates would do well to look for internships that provide opportunities to understand space management and determining warehouse space needs.

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